Compliance of California Employers with Artificial Intelligence Regulations
Employers in California are preparing for new legal regulations set to take effect by early 2027 for artificial intelligence and automated decision systems used in hiring and personnel processes.
Businesses in California must pay attention to the state's new AI employment laws as they integrate artificial intelligence and automated decision systems into their business processes. Signed by Governor Gavin Newsom on September 30, 2026, Senate Bill 947, known as 'No Robo Bosses,' will take effect on July 1, 2027.
This new legislation combines with existing regulations under the Fair Employment and Housing Act (FEHA), which has been in effect since October 1, 2025, and rules introduced by the California Privacy Protection Agency under the California Consumer Privacy Act (CCPA) that require compliance starting January 1, 2027. These laws regulate situations where AI software supports or makes decisions regarding applicants or employees in HR decisions.
Employers are advised to implement a unified process that includes documented human oversight in order to meet the varying requirements of these three different frameworks. In particular, CCPA regulations provide for pre-use notice and opt-out rights for employees and applicants regarding automated decision-making technology used for significant employment decisions.
Sources
- cdflaborlaw.com · Link