About

Newsom signs SB 947, barring California employers from firing or disciplining workers based solely on AI

Published
Score
20

Why it matters

California Gov. Gavin Newsom signed SB 947, the No Robo Bosses Act of 2026, on September 30, 2026, making California the first state to restrict employers from making termination or discipline decisions based solely on automated systems. When an automated tool is the primary basis for a decision, a person must verify it against other records, such as managerial evaluations, peer reviews, or personnel files. Affected workers must receive written notice stating that AI played a primary role and naming a human contact. The Labor Commissioner, the state attorney general, or local prosecutors enforce the law. It applies to all California employers, public and private, regardless of size, takes effect July 1, 2027, and bars employers from using automated systems to infer an employee's protected status under the Fair Employment and Housing Act.

The reporting does not detail the law's penalty structure or the enforcement process each agency will use. The statute is also a revised version of SB 7, which Newsom vetoed after objections from businesses, including Uber and Lyft, that it would limit automatic driver terminations and that its notice requirements were overbroad. The legislature split the earlier proposal into separate bills, and Newsom signed all of them. Companion measure AB 1883 bars employers from using workplace surveillance tools to recognize or predict an employee's emotional state or to collect neural data, with an exception for tools used to ensure safety.

Employers using AI-driven workforce management tools should begin compliance planning now, well before the July 2027 effective date. Review which systems feed into discipline or termination decisions, confirm that a human reviewer can check each output against independent records, and build the required notice process. Commentators expect other states to follow California's lead, so the framework may become a template beyond California's borders. Note that coverage of the law is only now appearing, about a month after signing, so this is not a new development.

Sources

mail Subscribe to Employment Law email updates

Primary sources. No fluff. Straight to your inbox.

Also on LawSnap