California’s “No Robo Bosses Act” would ban AI from making firing – but not hiring -decisions

California’s Senate Bill 7, known as the “No Robo Bosses Act,” would prohibit companies from primarily relying on AI systems to make critical employment decisions like firing, promoting, or disciplining workers. Introduced by Senator Jerry McNerney, a Democrat representing Stockton’s 5th District, the legislation aims to ensure human oversight remains central to workplace management decisions as AI increasingly infiltrates HR processes.

What you should know: The bill requires human review and corroborating evidence for any AI-driven employment decisions.

• Companies would be banned from using automated systems as the primary decision-maker for promotions, disciplinary actions, or terminations.
• If AI systems are used, a human must review the decision and “compile corroborating or supporting information” to validate the choice.
• The original bill included a provision banning fully automated hiring processes, but this was removed by the Senate Judiciary Committee after opposition from the California Chamber of Commerce.

Why this matters: The legislation addresses growing concerns about AI bias and reliability in high-stakes employment decisions that can dramatically impact workers’ lives and careers.

• Senator McNerney emphasized that “we really don’t want these automated decision-making systems to operate without any oversight” when dealing with personal workplace issues.
• AI systems are known to exhibit bias and can hallucinate—meaning they make up data or flawed decisions that affect people’s livelihoods.
• The European Union’s AI Act already specifically prohibits AI systems from determining users’ emotions, highlighting global regulatory momentum around AI limitations.

The competitive landscape: Major tech companies continue expanding AI into HR functions despite regulatory pushback.

• Microsoft recently released AI-powered updates to its Microsoft 365 suite, including “skills inference” and “skills management” agents that automatically identify workforce capabilities.
• McNerney’s office compiled a list of companies selling “bossware” products, including software that attempts to determine workers’ mental states—capabilities that lack scientific backing according to 2024 research.
• Larger corporations have increasingly adopted AI hiring tools for filtering applicants, though this introduces new risks alongside efficiency gains.

What’s next: The bill’s impact could extend beyond California’s borders by encouraging companies nationwide to reassess their AI deployment strategies.

• Even businesses outside California may want to ensure human oversight of AI systems making significant decisions about workers’ careers.
• The legislation reflects broader tensions between AI automation benefits and the need for human judgment in sensitive workplace situations.