About

Newsom signs SB 947 and SB 951, adding human-review rules for AI-driven firings and layoffs

Published
Score
39

Why it matters

Governor Gavin Newsom signed SB 947 and SB 951 on September 30, 2026, making AI oversight in discipline, termination, and layoffs binding California law. SB 947, authored by state Senator Jerry McNerney, bars employers from relying solely on automated decision systems to discipline or terminate workers starting July 1, 2027. A human must check the system's output against supporting data and give the worker written notice. The bill is a revised version of SB 7, which Newsom vetoed in October 2025 over concerns that its notice requirements were overly broad. The signed version narrows its scope to discipline and termination. SB 951 requires employers to disclose when AI or automation drives a mass layoff, relocation, or termination, effective January 1, 2027. A third law, AB 1883, bars certain AI workplace surveillance, including tools that try to read emotional state or collect neural data, also effective January 1, 2027.

The signed text does not establish penalty amounts. The enforcement framework, which gives the state labor commissioner and public prosecutors authority to pursue civil penalties, follows the structure of SB 7. Details of how the layoff disclosure rule will be applied in practice are not yet settled. Two state regulators have rules that run alongside these statutes: the Civil Rights Department's automated-decision regulations, in effect since October 1, 2025, and California Privacy Protection Agency rules on automated decision-making technology, with compliance deadlines of January 1, 2027.

Employers need to start compliance work now. Map every AI or automated tool used in discipline, termination, layoffs, or workplace monitoring, and build human review and written notice procedures before July 1, 2027. Review the surveillance restrictions in AB 1883 before January 1, 2027. The layoff disclosure rule in SB 951 ties AI-driven workforce reductions to Cal-WARN notice obligations, so HR and counsel should coordinate the two. The package does not ban these technologies. It requires human oversight, transparency, and accountability in how employers use them.

Sources

mail Subscribe to Employment Law email updates

Primary sources. No fluff. Straight to your inbox.

Also on LawSnap