CA SB 947: Employment: automated decision systems.

In one paragraph

California's SB 947 limits how employers, including public employers and labor contractors, use automated decision systems (ADS) such as AI tools, starting July 1, 2027. Employers may not use an ADS to violate labor or civil-rights laws, infer a protected status, or predict and punish workers for exercising their rights, and may not rely solely on an ADS to discipline or fire. When they primarily rely on one, a human must corroborate the output, and the worker gets a written notice and can request a description of their data used. $500 per violation. Signed September 30, 2026 (Chapter 859).

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

From July 1, 2027, California employers may not rely solely on AI or other automated tools to discipline or fire; primarily relying on one requires human corroboration, a written post-use notice and, on request, a description of the worker's data. $500 per violation.

Key provisions

1. 1Covers employers of any size, including state and local government (the University of California on agreement of the Regents) and labor, farm labor and foreign labor contractors (Labor Code §§ 1520-1526.7)
2. 2ADS: a computational process derived from machine learning, statistical modeling, data analytics or AI whose simplified output (a score, classification or recommendation) assists or replaces human discretionary decisions that materially affect people; spam filters, firewalls, calculators and databases are excluded
3. 3Employers may not use an ADS to prevent compliance with or violate labor, safety, employment or civil-rights laws, to infer a protected status, or to predict and take adverse action against a worker for exercising legal rights
4. 4No discipline or firing based solely on an ADS; if an employer primarily relies on ADS output, a human must corroborate it (e.g., with evaluations, personnel files, work product, peer reviews or witness interviews), and output that can't be corroborated or is inaccurate can't be used
5. 5Plain-language, stand-alone written post-use notice when the decision is communicated: an ADS was primarily relied on, a human reviewed and corroborated it, a human contact, the right to a description of the worker's own data used, and the ban on retaliation
6. 6Enforced by the Labor Commissioner and public prosecutors; injunctive relief, punitive damages and attorney's fees; $500 civil penalty per violation; anti-retaliation protection
7. 7Exceptions: collective bargaining agreements that clearly waive the law and protect against algorithmic management; uses required by, or reasonably necessary to comply with, federal law or a binding federal contract for developing aircraft or national security, military, space or defense products. Local laws with equal or greater protection are not preempted
8. 8Signed September 30, 2026 (Chapter 859, Statutes of 2026); the new part becomes operative July 1, 2027

Latest legislative action

Sep 30, 2026. Approved by the Governor; Chapter 859, Statutes of 2026

Sponsors