California Governor Gavin Newsom signed two new AI in employment bills that will go into effect as of January 1, 2027. These bills will limit and regulate the use of artificial intelligence decision making in the employer-employee relationship.
SB 947 is this year’s version of the “No Robo Bosses Act.” Last year, Governor Newsom vetoed a version of “No Robo Bosses” which would have required employers to provide notice for automated decision systems (ADS) use in all employment-related decisions and prohibited employers from primarily relying on AI for hiring, promotion, discipline, and termination decisions. An ADS includes “any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decision making and materially impacts natural persons.”
This year’s version, SB 947, which Governor Newsom did sign, is narrower. Under SB 947, an employer may not use an ADS to:
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