California will soon be the first state in the country to require a human to sign off before an employer can fire or discipline a worker based on what an artificial intelligence tool recommends. Governor Newsom just signed a bill informally known as the “No Robo Bosses Act” into law late yesterday after vetoing a similar measure last year. SB 947 requires a person to independently confirm the call before “primarily relying” on an AI tool to take an adverse employment action against an existing employee. Employers will also have to give the affected employee a written notice explaining the situation at the moment they deliver the news. The law takes effect July 1, 2027, which gives you plenty of time to inventory your tools and prepare. Here’s what you need to know and a five-step plan to get ready.

3 Key Things the New Law Requires

SB 947 creates three new obligations for employers:

• Cannot solely rely on AI. Beginning July 1, 2027, you cannot rely solely on an automated decision system when making a disciplinary or termination decision about an existing employee. A “system” is defined broadly as any computational process derived from machine learning, statistical modeling, data analytics, or AI that produces a simplified output such as a score, classification, or recommendation used to assist or replace human discretionary decision-making. The law carves out ordinary IT infrastructure, so spam filters, firewalls, antivirus software, identity and access management tools,...

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