California Bans Employers From Using AI Alone to Fire Workers Under New Law

California employers will be prohibited from relying solely on artificial intelligence to fire or discipline workers under legislation signed by Gov. Gavin Newsom on September 30, 2026. The law requires companies to independently verify certain AI-generated recommendations before taking action and grants employees access to information used against them.

Senate Bill 947, known as the No Robo Bosses Act, takes effect July 1, 2027. The measure, authored by Democratic state Sen. Jerry McNerney and backed by the California Federation of Labor Unions, AFL-CIO, addresses the growing use of algorithms to monitor performance, track productivity and recommend personnel actions.

Employers relying primarily on automated recommendations to discipline or terminate workers must assign someone to independently corroborate the decision using evidence such as personnel records or supervisory evaluations. Recommendations that cannot be verified, or are found to contain inaccurate, incomplete or misleading information, cannot be used to justify the action.

The legislation also bars employers from using automated systems to infer an employee's protected characteristics or predict and penalize workers for exercising their legal rights.

Workers disciplined or fired primarily on the basis of an automated recommendation must receive written notice when informed of the decision. The notice must identify the technology's role, confirm that its findings were reviewed and provide contact information for questions. Employees can also request a description of their personal data used in reaching the outcome.

Employers that violate the law face civil penalties of $500 per violation. California's Labor Commissioner can investigate complaints and pursue enforcement, while public prosecutors may bring civil actions. Workers are protected against retaliation for asserting their rights or cooperating with an investigation.

“No worker should ever be fired or disciplined by a robo boss,” McNerney said after the bill was signed. He acknowledged the technology's potential to increase productivity while warning of errors and biased assessments that could affect workers' livelihoods.

Newsom signed several AI-related workplace measures on the same day, including SB 951, which requires additional disclosures when automation causes qualifying mass layoffs, relocations or business closures.

Authored by Democratic state Sen. Eloise Reyes, SB 951 amends California's Worker Adjustment and Retraining Notification Act, which generally requires 60 days' advance notice of qualifying workforce reductions. Employers must specify the positions affected, the job functions being automated and the type of technology involved. The state's Employment Development Department will publish summaries of the reported job losses.

The new laws follow California regulations that took effect October 1, 2025, addressing discrimination involving automated hiring and employment tools. Those rules clarify that employers can face liability under the Fair Employment and Housing Act when AI-based screening, recruitment or promotion practices unlawfully disadvantage workers based on protected characteristics, including race, sex or disability. Employers must retain relevant records, including data from automated systems, for at least four years.

Colorado is also moving to regulate AI-assisted employment decisions. The state enacted Senate Bill 26-189 in May 2026, establishing disclosure and reconsideration rights when automated technology materially influences decisions involving employment, housing, lending and other essential services.

Colorado regulators released revised proposed rules on October 6 addressing when automated recommendations, rankings or scores materially influence such decisions. The law takes effect January 1, 2027, and the state attorney general has scheduled a public rulemaking hearing for October 26 before finalizing the regulations.