California Governor Gavin Newson signed a bill on Wednesday requiring California employers to make human decisions when firing or disposing of employees and restricting employers from using AI tools. The bill prohibits companies from making employee disciplinary decisions based solely on artificial intelligence or algorithmic tools. The ban will take effect on July 1, 2027. The bill also requires employers to issue notices to affected employees, inform them of the AI tools used, and provide a summary of personal data to refer to when making decisions. This bill is a revised version of the “Prohibition of Robot Bosses Act,” which Newson vetoed in 2025. This is one of the few laws passed by California legislators aimed at curbing the misuse of AI tools by US employers in workplace management. Colorado, Connecticut, and Illinois have introduced similar laws requiring employers to disclose the use of automated technology in hiring decisions.

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