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California Governor Gavin Newsom signed the 'No Robot Bosses Act' (SB 947), which imposes restrictions on employers' use of artificial intelligence when firing or disciplining employees. The new legislation stipulates that companies cannot rely entirely on automated decision-making systems to make such decisions, nor can they use AI as the primary decision-making tool. If an employer primarily bases the decision to fire or discipline an employee on AI output, it must be verified by a human reviewer in conjunction with other information such as management evaluations, peer reviews, and personnel files. Additionally, affected employees must receive written notice explaining the primary role of AI in the decision, the employee data used, and contact information for a human who can further explain the decision.
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