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California Governor Gavin Newsom signed SB 947, the No Robo Bosses Act, into law, reversing his previous veto of a similar bill. The legislation bans employers from relying solely on automated decision-making systems for termination or disciplinary actions and mandates human oversight, written notice to affected employees, and a human point of contact for explanations.
Governor Gavin Newsom signed SB 947, the No Robo Bosses Act, into law, marking the first state legislation in the nation to ban employers from using artificial intelligence exclusively to fire or discipline workers. The bill, authored by State Senator Jerry McNerney, prohibits businesses from relying solely on 'automated decision-making systems' for termination or disciplinary decisions. It also restricts the use of AI as a principal tool in such matters, requiring that if AI is used 'primarily,' a human reviewer must corroborate the decision using additional information such as managerial evaluations, peer reviews, and personnel files.
The law mandates that affected employees receive written notice stating that AI was 'primarily used' in their termination or disciplinary decision. This notice must include a description of the employee data used by the system and identify a human point of contact who can explain the decision. McNerney stated that AI must remain a tool controlled by humans, not the other way around, citing potential errors and in AI systems.
Newsom had previously vetoed a version of this bill in October 2025, citing concerns over unfocused notification requirements that would have compelled businesses to alert workers in advance whenever any AI system affecting work conditions was in use. To secure his signature, the bill was reintroduced in February 2026 with the pre-notification requirement removed and language extending protections to gig workers stripped out, a change that had drawn criticism from rideshare companies like Uber and Lyft.
Despite these modifications, California business leaders, including the Chamber of Progress, lobbied against the bill, arguing that the term 'primarily relies' is undefined and creates uncertainty for employers using ordinary tools. However, the bill passed with overwhelming legislative support and was signed amidst rising public distrust of AI in the workplace, with recent polls showing a significant increase in Americans believing AI does more harm than good or will take jobs.
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This is the first state law in the U.S. to explicitly prohibit AI-only adverse employment actions, setting a significant regulatory precedent for workplace AI use. It addresses growing public concern over algorithmic management and provides a concrete legal framework for worker protections that other states and federal legislators are currently considering but have not yet enacted.
The No Robo Bosses Act establishes a largely unprecedented level of oversight over workplace AI use in the United States. While local regulations like Illinois’ Public Act 103-0804 require notification for certain AI employment uses, they do not prohibit AI-only decisions. This California law goes further by mandating human review and corroboration, setting a new standard for accountability in automated management.
The law reflects a broader political and social shift regarding AI in the workplace. With 90% of U.S. managers reporting the adoption of at least one algorithmic management tool, according to OECD data, the legislation addresses the practical reality of widespread AI use in HR. It provides a legal recourse for workers who feel their termination or discipline was driven by biased or erroneous algorithmic outputs.
This action by California may influence other states and the federal government. Similar bills have been proposed in New York, Louisiana, New Jersey, and at the federal level by Senators Ed Markey and Brian Schatz, but none have been enacted. California’s move could provide the momentum needed for other jurisdictions to pass comparable protections, potentially creating a patchwork of state regulations that companies must navigate.
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Monitor how California employers interpret the undefined term 'primarily relies' on AI, potential legal challenges from business groups, and whether other states or the federal government adopt similar legislation in response to this landmark state action.
Employers in California will need to determine how to interpret the undefined term 'primarily relies' on an automated decision system. The lack of an objective standard for when AI moves from informing a decision to being a primary basis for it could lead to legal disputes and inconsistent implementation across different industries.
Business groups that lobbied against the bill may challenge its constitutionality or seek clarifications from the state. The Chamber of Progress argued that the uncertainty could discourage employers from using technologies that improve consistency and safety, a claim that will likely be tested in the courts or through further legislative action.
Other states and the federal government may accelerate their own legislative efforts in response to California’s lead. The success of SB 947, despite initial veto and business opposition, demonstrates that political will exists to regulate workplace AI, which could embolden similar bills in other jurisdictions and at the federal level.