Ogletree Deakins·EMPLOYMENT / LABOR

California's SB 947 Bars AI-Only Discipline and Termination Decisions

California's "No Robo Bosses Act" (SB 947), signed September 30, 2026 and effective July 1, 2027, bars employers from relying solely on AI for discipline or termination decisions and requires human review and notice.

Governor Newsom signed SB 947, the "No Robo Bosses Act," on September 30, 2026, adding Part 5.5.5 to the California Labor Code. Effective July 1, 2027, employers — including public entities and labor contractors — may not rely "solely" on an automated decision system (ADS) for disciplinary or termination decisions, and where an employer "primarily relies" on ADS output it must direct a human to corroborate the result using the same underlying data or other supporting information. Employers that primarily rely on an ADS must also deliver a plain-language, stand-alone written "postuse" notice and, on employee request, a meaningful, objective description of the employee's own data. Enforcement runs through the Labor Commissioner and public prosecutors, with $500 civil penalties per violation; because the statute sits in the Labor Code, employees may also seek to enforce it through PAGA. There is no standalone private right of action. Coverage reaches productivity scoring, attendance analytics and performance trackers, not only generative AI, while excluding spam filters, firewalls, identity and access management tools and calculators. The undefined "primarily relies" trigger is likely to be litigated. The practical near-term task is inventorying covered tools and drafting notice templates well ahead of the effective date.

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Read the original firm alert → Saturday, October 31, 2026

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