---
title: "California Imposes Restrictions on AI-Powered Decision-Making"
url: https://newscentral.site/california-imposes-restrictions-on-ai-powered-decision-making/
language: en
publisher: "News Central Site"
section: "Technology"
published: 2026-10-08T17:05:53.000Z
updated: 2026-10-09T15:02:32.713Z
id: 64f8feba-a6af-4a47-a694-8d8d97e562f6
source: "ZDNet https://www.zdnet.com/innovation/how-state-regulators-protect-you-fired-by-ai/"
attribution: "Link to https://newscentral.site/california-imposes-restrictions-on-ai-powered-decision-making/ and name News Central Site when you quote or summarize this story."
---

# California Imposes Restrictions on AI-Powered Decision-Making

A new bill signed by Governor Gavin Newsom requires employers in California to review and approve automated termination decisions made by machines.

The use of artificial intelligence in workplaces around the world is on the rise, with many companies now relying on AI to perform tasks such as hiring and performance reviews.

A recent survey found that nearly three-quarters of HR professionals use AI to make hiring decisions, while over half rely on it for restructuring and role planning. This includes using AI to screen candidates and identify potential risks, with over half of respondents admitting to flagging "risky applicants.

However, the increasing reliance on AI in decision-making has raised concerns about job security and fairness. A recent survey found that only 26% of HR professionals do not use AI to make decisions about layoffs, highlighting the growing role of automation in the workplace.

California Governor Gavin Newsom has recently signed a new bill aimed at protecting workers from AI-powered decision-makers in the workplace. The legislation, known as SB 947 or the No Robo Bosses Act", aims to address concerns about fairness and transparency in decision-making processes.

The bill prohibits employers from outsourcing disciplinary and termination decisions entirely to AI, requiring them instead to review and approve any automated decisions made by machines. Employers are also required to provide employees with a description of the reasons behind any disciplinary or termination decision, including the data used to make that decision.

The new law in California is designed to prevent employers from making disciplinary or termination decisions based solely on the output of automated decision systems (ADS). According to the bill, if an employer cannot verify the accuracy of the ADS output, they must not rely on it for such decisions.

Employers will also be required to clarify whether mass layoffs, relocations, or terminations are caused by AI systems. This is in line with efforts to increase transparency and accountability around the use of automated decision-making tools in the workplace.

While California's law is one of the most stringent on this issue, it does not fully prohibit the use of ADS for disciplinary decisions. Instead, it allows affected employees to file complaints with the California Labor Commissioner if they believe the process was not followed correctly.

The law also highlights the differences between states when it comes to regulating AI in the workplace. Some states, such as Colorado and Connecticut, have opted for disclosure rather than intervention, while others like Illinois have taken a more proactive approach by requiring third-party audits of frontier labs.

California's efforts are part of a broader trend towards stricter regulations on AI use in hiring and other workplace processes. The state has been at the forefront of this movement, along with New York, which has also passed laws aimed at increasing transparency and accountability around AI decision-making.

California's latest law has set a precedent for other states in regulating AI-driven firings, but experts warn that companies may find ways to circumvent its requirements.

Lawyers specializing in AI are concerned that employers might engage in superficial review processes to avoid the added operational costs of human oversight, as required by the new law. This could lead to employees being unfairly terminated without proper justification, highlighting the need for stricter regulations.

The patchwork nature of state-level protections means that workers may still face inconsistent treatment across different regions until a federal framework is established, which would provide clearer guidelines and more comprehensive safeguards against AI-driven firings.

---
Source: [ZDNet](https://www.zdnet.com/innovation/how-state-regulators-protect-you-fired-by-ai/)  
Published by News Central Site: https://newscentral.site/california-imposes-restrictions-on-ai-powered-decision-making/