On October 13, 2025, California Governor Gavin Newsom vetoed legislation that would have regulated employers’ use of artificial intelligence (AI) and other automated decisionmaking technologies in employment-related decisions, citing concerns about “overly broad restrictions” on employers’ use of the technology. The legislation, passed on the heels of the finalization of two separate sets of state AI regulations, would have added to California’s increasingly complicated web of overlapping and sometimes inconsistent laws and regulations concerning such technology.

• Governor Newsom vetoed the latest bill passed by lawmakers to regulate employers’ use of AI.
• The legislation would have required employers to provide written notice to employees and job applicants that AI was being used to make employment-related decisions and would have prohibited employers from relying solely on such tools to discipline or discharge employees.
• The veto would have added to California’s growing set of AI laws and regulations after California already finalized two separate sets of AI regulations in 2025.

Governor Newsom vetoed Senate Bill (SB) No. 7, known as the “No Robo Bosses Act,” saying the legislation would impose “overly broad restrictions” on how employers use AI and automated decisionmaking technologies and that it “fail[ed] to directly address incidents of misuse.”

The legislation would have prohibited employers from relying “solely” on what the legislation referred to as “automated...

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