The effective date is unsettled. Foley and NatLawReview report January 1, 2027, for both bills. Morgan Lewis reports July 1, 2027, for SB 947. Morgan Lewis's date is more specific, but it has not been checked against the statute text, so employers should not treat either date as confirmed until the enrolled bill language is reviewed.
The laws follow Newsom's October 2025 veto of SB 7, a broader bill he rejected over overly broad notice requirements. SB 947 is a narrower second attempt. The California Employment Development Department must publish SB 951 layoff notices and report on AI's effect on hiring. The Civil Rights Department and the California Privacy Protection Agency's rules on automated decision tools also apply alongside the new statutes. California joins Colorado, Illinois, and New York City in regulating AI in employment decisions. Employers should review discipline, termination, and layoff procedures now, confirm the operative date, and build a documented human review step for any decision that rests mainly on an automated system.