California Governor Gavin Newsom has signed the 'No Robot Bosses Act' (SB 947), which restricts employers from using artificial intelligence as the sole basis for firing or disciplining staff. Companies are now prohibited from relying exclusively on automated systems for such decisions.
Under the new law, if AI plays a primary role in a disciplinary or termination decision, employers must conduct a human review. This process requires verification through management assessments, peer evaluations, and personnel files. Affected employees must receive written notice detailing the data used and identifying a human contact for further explanation.
The legislation, authored by State Senator Jerry McNerney, underwent revisions to remove pre-notification requirements and provisions covering gig workers, which had previously faced opposition from companies like Uber and Lyft. Business groups have expressed concerns regarding the lack of a clear definition for 'primary reliance' on AI.
California is the first state to implement such a strict regulatory framework for workplace AI. While other states like Illinois have enacted laws requiring employee notification for AI use in hiring, they do not prohibit automated decision-making. Federal efforts to introduce similar bans remain stalled in Congress.
The move follows growing public concern over AI, with recent polls showing that 71% of Americans fear AI will displace jobs. Governor Newsom has also recently issued executive orders to establish state-level frameworks for auditing AI models to address potential risks.
