California Enacts SB 947 to Restrict Automated Workplace Firings

California has enacted SB 947, establishing first-in-the-nation statutory limits on the use of artificial intelligence and algorithmic software in workplace disciplinary and termination decisions. Governor Gavin Newsom signed the legislation, titled the 'No Robo Bosses Act,' which bars employers from relying exclusively or as a 'principal tool' on Automated-Decision Systems (ADS) to resolve a worker's disciplinary standing or continued employment, according to a report by Mashable Tech (https://mashable.com/tech/california-ai-workplace-law).

The statute defines an Automated-Decision System as any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that yields simplified outputs—such as scores, classifications, or recommendations—to assist or replace human discretionary choices affecting natural persons. Under the law, any use of AI in adverse employment actions must be disclosed to the affected employee, alongside specifics regarding the personal data supplied to the model.

For termination decisions where an algorithmic tool functions as a primary element, employers must assign a human reviewer to examine the outcome with the employee. That reviewer is required to substantiate the decision with corroborating records, including official performance reviews, disciplinary files, and witness statements. Employers are prohibited from using automated systems in manners that breach state employment protections or target protected classes, and decisions cannot proceed without human corroboration.

The measure applies to all California employers regardless of workforce headcount. Newsom previously vetoed an earlier version of the bill in 2025 due to concerns over overly broad notification requirements. To secure passage, legislators removed provisions requiring advance notice as well as terms covering gig workers, leaving gig economy contractors excluded from the enacted statute.

Enforcement falls under the California Labor Commissioner's Office, which is authorized to levy civil penalties against employers that violate the requirements or retaliate against employees who invoke their statutory rights under the law.