October 1, 2026
California to ban firings based solely on AI decisions: SB 947 requires human review
Starting Jul 1, 2027, California employers will be prohibited from basing dismissal or disciplinary action solely on an algorithm's decision.
On Sep 30, 2026, Gavin Newsom signed four laws on automated employment decisions, layoffs and worker surveillance.
Human review. SB 947 regulates automated decision systems, or ADS. These systems produce scores and recommendations that employers rely on when dismissing or disciplining employees. If an employer relies primarily on such an output, a human reviewer must substantiate the decision with the underlying data or other information about the employee's work.
The reviewer may use manager evaluations, personnel records or work results. The law also allows feedback from colleagues and witness testimony. An employer may not use an ADS output if it cannot be substantiated or if the reviewer finds it inaccurate, incomplete or misleading.
The employer must provide a separate written notice of its use of ADS at the same time as the employment decision. The notice must disclose the human review and provide a contact for questions. Employees may request a description of their own data used by the system.
Each violation of SB 947 carries a $500 civil penalty. The Labor Commissioner and prosecutors enforce the law.
What changes for AI-driven layoffs
Reason for the layoffs. Cal/WARN already requires 60 days' notice of mass layoffs. SB 951 adds disclosure requirements when AI or automation is the cause.
In that notice, the employer must specify:
- The number of employees, their occupations and work locations. - The job functions being automated. - The type of technology replacing workers.
The notice must display “This notice is for a technology displacement” at the top. A mass layoff means at least 50 workers are laid off within 30 days. The requirement covers an establishment or part of one that employs, or employed during the previous 12 months, at least 75 people.
The Employment Development Department must publish summaries of the notices and quarterly totals for technology-driven layoffs.
What limits apply to surveillance
The package also includes AB 1331 and AB 1883. AB 1883 prohibits employers from using AI surveillance to recognize or predict employees' emotions or collect data on neural activity. The law separately permits the use of tools to ensure safety.
Primary sources: [SB 947, Sep 4, 2026 version](https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB947), [SB 951, Sep 4, 2026 version](https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB951), [AB 1883, Sep 3, 2026 version](https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1883), [laws signed on Sep 30, 2026](https://sd05.senate.ca.gov/news/newsom-signs-mcnerneys-no-robo-bosses-act-2026-requiring-human-oversight-ai-workplace).
By Jan 1, 2028, the Employment Development Department must submit a report to lawmakers on AI's impact on hiring.
