California's new law requires that employee terminations be decided by humans, not AI.

California Governor Gavin Newsom signed a bill on Wednesday requiring California employers to have a human make the decision when terminating or disciplining employees, and restricting employers' use of AI tools. The bill prohibits companies from making employee disciplinary decisions based solely on artificial intelligence or algorithmic tools, with the ban taking effect on July 1, 2027. The bill also requires employers to notify affected employees about the AI tools used and provide a summary of the personal data referenced in the decision. The bill is a revised version of the "no robot bosses bill" that Newsom vetoed in 2025. It is one of the few bills passed by California state lawmakers aimed at curbing U.S. employers' misuse of AI tools in workplace management. Colorado, Connecticut, and Illinois have also introduced similar laws requiring employers to disclose when using automated technology in hiring decisions.