California Enacts Strict AI Workplace Rules as Newsom Exits Office

Key points

• SB 947, the 'No Robo Bosses Act,' prohibits employers from relying exclusively on automated decision-making systems for termination or discipline.
• The law requires a human reviewer to corroborate AI decisions using additional data like peer reviews and personnel files.
• Employers must provide written notice to workers if AI was 'primarily used' in their termination or disciplinary decision.
• Newsom signed an executive order requiring state agencies to use 'artificial intelligence' instead of 'superintelligence,' a term promoted by President Trump.
• Newsom criticized the federal government for lacking comprehensive AI regulations, noting that industry leaders are currently 'self-policing' development.
• The legislation was signed on Newsom’s last day to sign or veto bills before his term ends in January.

Background

This signing follows a period of intense legislative activity in California regarding AI safety. In September 2026, Newsom signaled he would push for further measures, potentially calling a special session. Earlier this month, he signed laws requiring risk assessments for AI chatbots. The current laws build on previous state actions, such as the Safe at Home protections for immigration workers, reflecting a broader trend of California legislating ahead of the federal government on technology and labor issues.

How outlets are covering it

The Guardian and AP News focused on the broad scope of Newsom’s actions, highlighting his criticism of the federal government’s lack of AI regulation and his executive order rejecting the term 'superintelligence.' They emphasized the political context, including Newsom’s potential 2028 presidential run and his stance on billionaire taxes. CNBC provided a more detailed analysis of the 'No Robo Bosses Act' (SB 947), noting that it is the first of its kind in the nation. CNBC highlighted the business community’s opposition, citing concerns that the term 'primarily relies' on AI is undefined, which could discourage the use of beneficial management tools. CNBC also noted that the bill was modified from its 2025 version to remove pre-notification requirements and gig worker protections to secure Newsom’s signature. Labor unions, represented by the California Federation of Labor Unions, praised the law as a victory for workers, while Republican gubernatorial candidate Steve Hilton supported the core protections but argued the law does not go far enough.

Why it matters

California’s new laws set a precedent for workplace AI regulation in the United States, potentially influencing legislation in other states like New York and New Jersey. The strict requirements for human review and transparency in AI-driven employment decisions could reshape how major tech and retail companies manage their workforces. Furthermore, Newsom’s aggressive stance on AI regulation and his criticism of federal inaction may become a central theme in the 2028 presidential election, where AI policy is expected to be a major issue for Democratic candidates.

What to watch

California businesses will be the first to navigate this new regulatory framework. Other states with pending similar legislation may accelerate their efforts in response to California’s lead. Newsom has left the door open for a special legislative session to further address AI issues before his term ends. The outcome of the November midterms will also determine the balance of power in Congress, which could impact future federal AI regulations.