California is the first state to tell employers that software can't be the only thing deciding whether a worker gets disciplined or fired. Gov. Gavin Newsom signed SB 947, the No Robo Bosses Act of 2026, on Sept. 30. It takes effect July 1, 2027.

The bill was written by state Sen. Jerry McNerney, a Pleasanton Democrat, and backed by the California Federation of Labor Unions. It's his second try: Newsom vetoed an earlier version, SB 7, in 2025, calling it too broad.

What the law actually requires

Despite the name, it is not a ban on workplace AI. Companies can keep using scoring and analytics tools. The rules kick in at the moment a system's output turns into a decision about an existing employee.

  • An employer can't rely solely on an automated decision system to discipline or fire someone.
  • If it relies primarily on one, a human has to corroborate the result using other evidence, such as manager evaluations, personnel files, work product, peer reviews or witness interviews. If the reviewer can't back it up, or finds the output inaccurate or misleading, the employer can't use it.
  • The worker must get a separate written notice at the time of the decision saying a system was primarily used, that a human checked it, who to contact with questions, and that they can ask for a description of their own data the system used.
  • Retaliating against workers who use these rights is prohibited.

Some uses are off-limits no matter how much human review happens, including using a system to guess a worker's protected status or to predict that someone will exercise a legal right and punish them for it.

Broader than "AI"

Employment attorney Anthony Zaller notes the definition reaches tools many employers don't think of as AI, such as scheduling software that hands out attendance points, productivity scores, or register analytics that flag voids and discounts. There's no minimum company size, and public employers are covered. Job applicants and independent contractors are not, and the final bill dropped coverage of gig workers.

Enforcement and open questions

The state labor commissioner and public prosecutors enforce the law, with a $500 civil penalty per violation. Once a worker shows a system was used, the burden shifts to the employer to prove it complied. Critics, including the tech-industry group Chamber of Progress, say the key phrase "primarily relies" is never defined.

"No worker should ever be fired or disciplined by a machine, AI or not," McNerney told CNBC, according to AIReport.

A separate law, SB 951, will also require extra disclosures in California layoff notices starting Jan. 1, 2027, when AI or automation drives a mass layoff.