California Signs Two AI-in-Employment Laws With 2027 Duties
SB 947 bars sole reliance on automated decision systems for discipline and termination and SB 951 adds AI-displacement detail to Cal/WARN notices, both signed September 30, 2026 and taking effect July 1, 2027.
California Governor Gavin Newsom signed two bills on September 30, 2026 tightening state rules on employer use of AI in employment decisions.
SB 947, the "No Robo Bosses Act," applies to all California employers. It bars use of an automated decision system (ADS) to violate employment or civil rights law or to infer protected status under the Fair Employment and Housing Act. From July 1, 2027, an employer may not primarily rely on ADS output in a disciplinary or termination decision without human corroboration; uncorroborated or inaccurate output cannot be used. Employers must give a written, stand-alone notice with the decision and, on request, a meaningful, objective description of the employee's own data, anonymized as to third parties. Penalties reach $500 per violation plus punitive damages, fees and injunctive relief, and the burden of proof shifts to the employer once ADS use is shown. Spam filters, firewalls, antivirus tools and calculators are excluded from the definition.
SB 951 amends the Cal/WARN Act to require added disclosures when mass layoffs, relocations or terminations are driven in whole or substantial part by AI or automation, and directs EDD publication plus a legislative report by January 1, 2028.
Clients should inventory tools, map discipline workflows and human review, and check vendor contracts before July 2027.