California Governor Gavin Newsom (Democrat) signed a bill on Wednesday that requires California employers to have a human make the decision when terminating or disciplining employees, and restricts employers' use of AI tools.

This bill (SB 947) prohibits companies from making employee disciplinary decisions based solely on artificial intelligence or algorithmic tools, and the ban will take effect on July 1, 2027.

The bill also requires employers to notify affected employees about the AI tools being used and to provide a summary of the personal data referenced in the decision-making process.

This bill is a revised version of the "No Robo Bosses Act" that Newsom vetoed in 2025.

It is one of the few bills passed by California state lawmakers aimed at constraining American employers' misuse of AI tools in workplace management.

Colorado, Connecticut, and Illinois have also introduced similar laws requiring employers to disclose when using automated technology in hiring decisions.

The Trump administration has been working to prevent states from regulating AI, through means including proposing congressional legislation, initiating Department of Justice lawsuits, and threatening to cut federal funding.