California Governor Gavin Newsom has signed the No Robo Bosses Act, making California the first US state to bar employers from relying solely on artificial intelligence to fire or discipline workers.

Senate Bill 947 stops companies from using an automated decision-making system as the sole basis for firing, disciplining or demoting a worker. If an employer mainly relies on such a system, a human reviewer must corroborate the decision using personnel files, manager evaluations or peer reviews.

Employers must also give affected workers written notice describing the AI’s role and the data it used, along with a human contact who can explain the decision. Violations carry civil penalties of $500 each, plus possible punitive damages.

Newsom vetoed an earlier version of the bill in October 2025, calling it overly broad. The revised bill, authored by State Senator Jerry McNerney, takes effect on July 1, 2027, giving employers about nine months to rebuild their termination workflows.

In a jab at Washington, Newsom also signed an executive order requiring California agencies to keep calling the technology “artificial intelligence”.