This week, California enacted legislation that prohibits employers from relying exclusively on artificial intelligence when terminating or disciplining employees.
Requirements for AI Use in Termination
The No Robo Bosses Act, identified as Senate Bill 947, bars companies throughout California from depending only on “automated decision-making systems” for actions such as employee discipline or termination. Under the new statute, a human official must verify any AI-generated outcome by consulting managerial assessments, peer feedback, and the employee’s personnel records. Workers are required to receive a written notice indicating that AI was “primarily used” in the decision, an outline of the data the system considered, and the name of a human contact who can clarify the reasoning.
Senator Jerry McNerney, a Democrat who authored the measure, told CNBC that “no worker should ever be fired or disciplined by a machine, AI or not.” He added that while AI can raise efficiency, it has also produced mistakes, poor judgments and bias.
Legislative History and Opposition
McNerney first introduced the bill in 2025 after unions mounted a coordinated campaign. Governor Gavin Newsom initially opposed the No Robo Bosses Act, arguing it was overly broad and could cripple employers even in minor AI applications. Subsequent amendments trimmed the most burdensome provisions and carved out exemptions for ride-hailing firms such as Uber and Lyft, which rely heavily on gig workers. Despite the changes, many California business executives continued to object to the legislation up to its final passage.
Robert Singleton, senior director of policy and public affairs for the California and U.S. West Chamber of Progress—a trade association for technology companies—sent a letter to Newsom earlier this month. Singleton contended that the bill’s requirements kick in only when an employer “primarily relies” on an automated decision system, yet the phrase lacks a clear definition. He warned that employers have no objective benchmark to decide when a tool shifts from merely informing a choice to serving as the primary basis for it.
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Public Concern and Recent Legal Action
Labor leaders in California welcomed the governor’s signature on the law. Lorena Gonzalez, president of the California Federation of Labor Unions, AFL-CIO and chief sponsor of the No Robo Bosses Act, said “when working people organise, we get results.” She noted that workers statewide have called for the state to pioneer AI regulation in workplaces, and that the new statute represents the first step toward that goal.
A survey of U.S. managers indicates that 90% say their companies have implemented at least one tool to “instruct, monitor or evaluate workers,” a rate that surpasses adoption levels in any other nation. Meta is currently defending a lawsuit filed in July in which former staff claim that AI-assisted systems were used to rank employees for layoffs, disproportionately affecting those who had taken medical or family leave. The company denies the allegations, while the plaintiffs assert the algorithms singled them out after they requested protected or maternity leave or disability accommodations.
Although data-center impacts have drawn environmental scrutiny, the present law concentrates on job security. A Gallup poll released in July showed that 39% of Americans now view AI as causing more harm than good, up eight points from the 31% who felt that way in 2025. Likewise, a Pew Research study published in August reported that 71% of U.S. adults believe AI will eliminate jobs, a rise of roughly seven percentage points over the prior two years.
Adam McCulloch began his career at Personnel Today in the early 1990s as a sub-editor. He returned to the publication as a writer in 2017, covering a broad range of HR topics with particular focus on diversity, social mobility and industrial relations. Beyond HR, McCulloch has contributed as a freelance writer and production editor to outlets covering travel (The Guardian), aviation (Flight International), agriculture (Farmers’ Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. His interest in industrial relations sparked after witnessing a 1984 exchange between Arthur Scargill and National Coal Board chairman Ian McGregor while working as a temporary staff member moving chairs at an NCB conference room.
