California bans employers from relying solely on AI for firings and disciplinary action — CNBC

In California, United States, Governor Gavin Newsom signed SB 947, known as the No Robo Bosses Act. It prohibits employers from making decisions to fire or discipline an employee based exclusively on automated decision-making systems. CNBC reports.

Mandatory human review

If an employer primarily uses AI-generated results to decide on a firing or disciplinary action, the decision must be confirmed by a human. During such a review, additional information must be considered, including managers’ assessments, colleagues’ feedback and personnel file data.

An employee who was fired or subjected to disciplinary action must also receive written notice that AI was primarily used in the decision. The employer must describe what employee data the system used and provide contact details for a person able to explain the decision.

More current news is available on the UA.News Telegram channel Telegram.

Law follows revision of the bill

The bill’s author, Democratic Senator Jerry McNerney, first introduced the initiative in 2025. He told CNBC that artificial intelligence can improve productivity, but such systems have also made mistakes, inaccurate assessments and shown bias.

In October, Newsom vetoed an earlier version of the document, although it was supported by both chambers of the state legislature. At the time, the governor objected to a requirement to notify employees in advance about the use of AI that could affect their working conditions. After the bill was reintroduced in February, this provision was removed, as was a provision extending protections to gig economy workers.

According to the Organisation for Economic Co-operation and Development, the United States leads in the adoption of algorithmic employee management systems: 90% of managers said their companies had implemented at least one tool for instructing, monitoring or evaluating staff. CNBC notes that the California law became the first act of its kind in the United States.