California has become the first US state to prohibit employers from relying completely on artificial intelligence to fire or discipline workers after Governor Gavin Newsom signed the landmark No Robo Bosses Act into law, as reported by CNBC. The legislation, known as SB 947, requires human oversight in workplace decisions involving employee discipline and termination, marking one of the most significant attempts yet to regulate AI’s growing role in employment. This new law bras the employers from exclusively using automated decision-making systems when taking disciplinary action against workers. Companies that reply primarily on AI-generated recommendations must make sure a human reviewer verifies those decisions using additional information, including managerial assessments, personnel records and peer evaluations.
‘No worker should ever be fired by a machine’
Announcing the legislation, Gavin Newsom said workers should not face career-altering decisions made solely by algorithms. “No worker should ever be fired or disciplined by a machine, AI or not,” Newsom said. “Artificial intelligence systems have the potential to boost productivity, but they’ve also made errors and misjudgments and exhibited bias.”The law also increases transparency requirements. Employees affected by disciplinary action or termination must be informed when AI was primarily used in the decision-making process, receive details about the data reviewed by the system, and be provided with a human contact who can explain the outcome.
What the law requires
SB 947, known as the No Robo Bosses Act, prohibits California businesses from exclusively using “automated decision-making systems” to make employee discipline or termination decisions, and restricts how heavily companies can lean on AI as the primary basis for those calls. Under the law, employers that “primarily” rely on AI output for termination or disciplinary decisions must have a human reviewer corroborate that decision using additional information, such as managerial evaluations, peer reviews, or personnel files.Affected employees must also receive written notice whenever AI was primarily used in a decision affecting them, along with a description of what employee data the system relied on and a human point of contact who can further explain the decision.State Senator Jerry McNerney, the bill’s author, framed the law’s core principle plainly: no worker should ever be fired or disciplined by a machine, AI or otherwise, arguing that while AI systems can boost productivity, they’ve also repeatedly shown errors, misjudgments, and bias — meaning AI must remain a tool controlled by humans, not the reverse.
A years-long push from organized labour
McNerney first introduced the bill in 2025 following a sustained push from organized labor in California to establish guardrails around how management can use AI to take adverse action against workers. Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO and the bill’s lead sponsor, called the signing a direct result of workers organizing and demanding that California lead the way on regulating AI in the workplace, describing it as a shift in the national conversation around how Americans can push back against AI encroaching on their jobs.The law arrives alongside a broader wave of AI-related action from Newsom, who recently signed an executive order addressing potential existential risks posed by AI models, along with a separate measure establishing a state framework for independent evaluation and auditing of AI systems. Newsom has framed these actions as stepping in where he believes the federal government has abdicated its responsibility to protect Americans.
The scale of the problem it’s meant to address
The law lands amid growing evidence that AI-driven workplace management is already widespread and increasingly controversial. According to OECD survey data published late last year, the US leads the world in adoption of automated management software, with 90% of American managers reporting their firms have adopted at least one tool to instruct, monitor, or evaluate workers.That adoption hasn’t come without friction. Meta is currently facing a lawsuit filed in July alleging that AI-assisted systems were used to rank and select employees for layoffs, with former employees claiming the process disproportionately affected workers who had taken medical or family leave — allegations Meta has denied. Separately, a May survey from the labor-rooted nonprofit United for Respect found growing concern among Walmart and Amazon workers that HR decisions are increasingly being automated without adequate oversight; the group had previously failed to convince Walmart shareholders to require greater disclosure around workforce AI use.
Labour groups celebrate landmark win
The legislation originated from a push by labour unions and worker advocacy groups seeking stronger safeguards around AI in the workplace. Jerry McNerney, the Democratic state senator who authored the bill, said AI should remain a tool rather than a decision-maker.“AI must remain a tool controlled by humans, not the other way around,” McNerney said. Labour leaders hailed the signing as a significant milestone. Lorena Gonzalez, president of the California Federation of Labor Unions, said workers had successfully pushed California to lead the nation in regulating workplace AI.“Workers across California have demanded that our state lead the way in regulating AI in our workplaces,” Gonzalez said. “Today, California’s workers and our unions have changed the national narrative on how Americans can fight back
