A newly enacted California statute mandates human supervision whenever businesses employ artificial intelligence or automated decision-making platforms to execute particular termination and disciplinary actions. On September 30, 2026, Governor Gavin Newsom gave his signature to Senate Bill 947, dubbed the “No Robo Bosses Act.” Consequently, California becomes the initial state in the United States to implement this precise mandate regarding AI-driven employment choices.
While the regulation does not prohibit businesses from integrating AI in workplace management, it limits organizations from depending primarily on an automated decision system for choices regarding employee termination or discipline. Whenever such a platform significantly influences a verdict, a person is required to validate the outcome utilizing pertinent supporting data.
Human Review Becomes Mandatory
Pursuant to SB 947, organizations utilizing automated decision platforms for firing or disciplinary actions are obligated to guarantee that a person examines and confirms the result. This evaluation may factor in the data utilized to produce the automated platform’s output, alongside additional pertinent evidence.
Furthermore, the legislation grants workers distinct rights regarding information concerning how an automated decision platform was deployed. If a company predominantly depends on such a system, the impacted worker holds the right to ask for an overview of their personal data that served as the primary basis for the choice. Additionally, employers are required to deliver a written post-use notification under designated conditions.
Law takes effect in 2027
These stipulations are slated to take effect on July 1, 2027, granting California businesses an opportunity to assess their AI-driven labor systems and revise their decision-making workflows. The California Labor Commissioner will oversee enforcement of the statute, carrying a civil fine of USD 500 for each violation pursuant to the modified terms.
In addition, the statute outlines precise exemptions. For instance, specific applications of automated decision platforms tied to aircraft manufacturing, national security, military, space, or defense-oriented goods and services may be excluded from the legislation if their application is reasonably essential to fulfill federal guidelines.
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