California lawmakers just passed a law that could soon require employers to not only provide notices to applicants and workers when AI is used in workplace decision-making, but would also prohibit the use of AI for certain workplace actions. The “No Robo Bosses” Act (SB 7), which aims to regulate the use of automated decision systems (ADS) in the workplace, now heads to Governor Newsom’s desk after passing the legislature late Friday. If signed, SB 7 will take effect on January 1, 2026, alongside a wave of other AI-related employment regulations that will create a complex compliance landscape for employers using AI in the workplace. Here’s what you should know about the new law and the four steps you should take to get ready for compliance.

No Robo Bosses Act: Executive Summary If signed by the Governor, the No Robo Bosses Act will do the following: Employers will be prohibited from solely using AI to make decisions regarding discipline or termination Employers that primarily rely on AI output to make a discipline or termination decision must involve a human in the loop Employers must provide detailed advance notice whenever it uses AI to make hiring or employment-related decisions, or post-action notice if it primarily relies on AI is to make a decision related to discipline or termination

Definition of Automated Decision System

Let’s first talk about the kinds of AI systems that are regulated by the No Robo Bosses Act. The bill impacts employers’ uses of...

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