In a renewed effort to establish guardrails for artificial intelligence in employment, State Senator Jerry McNerney reintroduced Senate Bill 947 (SB 947) on February 2, 2026. Known as the “No Robo Bosses Act,” this legislation seeks to regulate the use of Automated Decision Systems (ADS) in workplace discipline and termination.
This bill is an updated version of a previous proposal vetoed in 2025. The revised text aims to address prior concerns by focusing on “post-use” transparency rather than restrictive advance notices, while maintaining strict requirements for human oversight.
Key Provisions of SB 947
The bill defines an ADS broadly as any computational process, including machine learning and AI that replaces human discretion in making decisions that significantly impact workers.
- Human-in-the-Loop Requirement. Employers are prohibited from relying solely on an ADS to discipline or terminate employees. A “natural person” must conduct an independent investigation to corroborate AI-generated outputs before any action is taken.
- Prohibited Uses. The bill specifically bars the use of ADS for:
- Predictive Behavior Analysis: Inferring a worker’s future behavior, intentions, or emotional state.
- Inferring Protected Statuses: Using AI to identify or profile characteristics like race, religion, or gender.
- Post-Use Notice. If an ADS is used to assist in a discipline or termination decision, the employer must provide a written notice to the affected worker. This notice must explain the data used and provide contact information for the human reviewer.
- Worker Data Access. Employees gain the right to request a copy of their own data used by an ADS for these decisions once every 12 months.
Enforcement and Penalties
SB 947 introduces robust enforcement mechanisms to ensure compliance.
- Civil Penalties. Violations are subject to a $500 civil penalty per violation.
- Private Right of Action. Beyond enforcement by the Labor Commissioner and public prosecutors, workers can bring private civil actions for damages, including potential punitive damages and attorney’s fees.
- Anti-Retaliation. The bill strictly prohibits any form of retaliation against employees who exercise their rights under this act.
Next Steps for Employers
While SB 947 is currently moving through the legislative process, California employers should begin preparing for a landscape where AI transparency is mandatory:
- Conduct an AI Audit: Identify all software currently in use, such as performance management platforms or applicant trackers that may qualify as an ADS.
- Review Disciplinary Procedures: Ensure that every termination or disciplinary action involving AI or data-driven metrics includes a documented human review and independent verification.
- Prepare Disclosure Templates: Develop draft “post-use” notices that clearly explain how automated systems contribute to employment decisions in plain language.
- Monitor Legislative Status: Stay informed on the bill’s progress.
