California enacted a new law requiring human oversight when employers use artificial intelligence or automated decision systems to make certain disciplinary and termination decisions. Governor Gavin Newsom signed Senate Bill 947, known as the ‘No Robo Bosses Act’, on September 30, 2026. The legislation makes California the first US state to establish this specific requirement for workplace AI decisions.
The law does not prevent companies from using AI in workplace management. Instead, it restricts employers from primarily relying on an automated decision system when deciding whether to discipline or terminate an employee. Where such a system plays a major role, a human must corroborate the decision using relevant supporting information.
Under SB 947, employers using automated decision systems for disciplinary or termination decisions must ensure that a human reviews and verifies the outcome. The review can consider the information used to generate the automated system’s output, along with other relevant evidence.
The legislation also gives employees certain rights to information about how an automated decision system was used. When an employer primarily relies on such a system, the affected employee can request a description of their own data that was primarily used to make the decision. Employers must also provide a written post-use notice in specified circumstances.
The provisions are scheduled to become operative on July 1, 2027, giving California employers time to review their AI-powered workplace systems and update their decision-making processes. The law will be enforced by the California Labor Commissioner, with a civil penalty of USD 500 applicable per violation under the amended provisions.
The legislation also contains specific exceptions. For example, certain uses of automated decision systems connected to aircraft development and national security, military, space or defence-related products and services can fall outside the law when their use is reasonably necessary to meet federal requirements.
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