California Governor Gavin Newsom has signed SB 947, the “No Robo Bosses Act,” which restricts how employers can use automated decision systems in disciplinary and termination decisions. The law does not ban AI in these processes outright, but it requires employers to verify AI output with a human reviewer and to provide affected employees with a description of the reasons, including the data used. If the human reviewer finds the AI output inaccurate or misleading, the employer cannot rely on it for the final call.
The law takes effect on July 1, 2027, and lets employees file complaints with the California Labor Commissioner if they believe the process was not followed. It also obliges employers to state whether a mass layoff or relocation was caused by an AI system. The move comes amid widespread AI use in HR: a MyPerfectResume survey of 1,000 HR professionals found 73% use AI in hiring decisions, 52% use it for restructuring and role planning, and 51% use it to flag “risky” candidates.
Other states have taken different approaches. Colorado and Connecticut have focused on requiring disclosure of AI use, while California and New York have pushed stricter rules. Lily Li, an AI-focused lawyer, told ZDNET she expects California’s law to set a precedent, but also anticipates employers trying to game the requirement with “check-the-box” reviews rather than meaningful human oversight. Federal AI regulation remains less specific, leaving state-level protections patchwork for now.