On September 30, 2026, California passed SB 947, titled the No Robo Bosses Act. The No Robo Bosses Act will prohibit employers from using automated decision systems (ADS) to make employment decisions. This bill will take effect beginning July 1, 2027.
ADS includes any computational process from data analytics to AI that is used to assist or replace human discretionary decision-making. Under the No Robo Bosses Act, employers are not allowed to use an ADS to make any disciplinary or termination decisions regarding an employee. If an employer does use an ADS, the employer must corroborate the decision by having a human review data and confirm that the data does support that decision.
Additionally, if an employer relies on an ADS to make said decision, the employer must provide a notice to the employee stating that that the employer used the ADS to make the decision, that a human reviewed the decision and confirmed the output, contact information for a human should the employee have any questions, and a statement acknowledging that the employer is prohibited from retaliating against the employee for exercising their rights under the No Robo Bosses Act.
This bill is a revised version of SB 7 from last year, which was vetoed by Governor Newsom on October 13, 2025. In his veto letter, Governor Newsom emphasized the overbroad scope of the bill as it would require employers to notify employees and job applicants of all ADS in use. Governor Newsom also pointed out concerns that the bill would overlap with regulations finalized by the California Privacy Protection Agency (CPPA) in 2025, as those regulations already required pre-use notice of all ADS. SB 947 removes the pre-use notification requirement that was previously included in SB 7, including only the post-use notice provided to affected employees. Furthermore, SB 947 narrows the prohibition on ADS usage in disciplinary and termination decisions by requiring human corroboration rather than simply human review.
Employers who violate this law can face a civil penalty of up to $500 per violation, enforced by the Labor Commissioner or a public prosecutor. In any civil actions or proceedings, the burden of proof would be on the employer to demonstrate that they did not primarily rely on ADS or that they provided a post-use notice.
Key Takeaways for California Employers
Prior to the bill taking effect, California employers should begin to limit reliance on automated tools in making disciplinary or termination decisions in the workplace. Employers should be aware of all AI usage in the workplace as the California legislature continues to roll out more regulations on AI usage.
For questions or guidance on how SB 947 may impact your organization, please do not hesitate to reach out to your GRSM attorney or a member of GRSM’s Employment team for assistance. This legal alert was authored by Partner Brandon Saxon and Law Clerk Nikki Wu.