On September 30, 2026, Governor Gavin Newsom signed Senate Bill 947 (“SB 947”), also known as the “No Robo Bosses Act of 2026,” which imposes new restrictions on employers’ use of artificial intelligence (“AI”) and automated decision systems (“ADS”) in workplace disciplinary and termination decisions. Beginning July 1, 2027, California employers will be required to implement additional safeguards to ensure meaningful human oversight when utilizing automated technology in employment decisions.

SB 947 defines an ADS as a computational process derived from machine learning, statistical modeling, data analytics, or AI that generates outputs, such as scores, classifications, or recommendations, to assist or replace human decision-making and materially impact individuals.

Under SB 947, employers are prohibited from relying solely on an ADS when making disciplinary or termination decisions. Where an employer primarily relies on an ADS, a human reviewer must corroborate the decision using supporting information, such as supervisory evaluations, personnel records, employee work product, or witness interviews. If the automated output cannot be corroborated or is determined to be inaccurate, incomplete, or misleading, the employer cannot rely on it to discipline or terminate an employee.

The law also prohibits employers from using ADS to infer an employee’s protected characteristics, interfere with compliance with employment laws, or predict and take adverse action against employees for exercising their legal rights.

Employers that primarily rely on ADS in disciplinary or termination decisions must provide affected employees with written notice when communicating the decision. The notice must disclose the use of ADS, confirm human review, identify a contact person, and explain applicable employee protections. The notice must also be provided as a separate, stand-alone communication in plain language.

Additionally, employees may request a meaningful, objective description of their personal data used by the ADS in reaching the decision. Employers must provide that description while protecting the personal information of the customers and other individuals.

SB 947 also provides an exception for employees covered by a qualifying collective bargaining agreement, provided the agreement expressly waives the statute’s requirements, addresses wages and working conditions, and includes protections against algorithmic management.

SB 947 prohibits retaliation against employees who exercise their rights under the law. Violations may result in enforcement actions by the California Labor Commissioner or public prosecutors, including civil penalties of $500 per violation.

Before July 1, 2027, employers should evaluate their existing AI-driven workplace technologies, establish procedures for human review and collaboration, train management personnel, and implement appropriate employee notification practices. Employers should also review applicable privacy requirements, as SB 947 does not eliminate separate obligations under California’s consumer privacy laws.

Stokes Wagner will continue to monitor developments concerning AI in the workplace and provide further updates as they occur. Employers with questions about SB 947 or the use of automated decision systems in employment decisions should contact a Stokes Wagner attorney.

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THIS DOCUMENT PROVIDES A GENERAL SUMMARY AND IS FOR INFORMATIONAL/EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE COMPREHENSIVE, NOR DOES IT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL BEFORE TAKING OR REFRAINING FROM TAKING ANY ACTION.