California Cracks Down on AI at Work: What Other States Are Doing

SB 947, which was authored by state Senator Jerry McNerney and takes effect on July 1, 2027, tackles one of the most controversial uses of AI in the workplace: deciding whether somebody should be disciplined or fired.

The law prohibits an employer from relying solely on an Automated Decision System (ADS) when making a disciplinary or termination decision.

The new law states that when an employer relies primarily on an ADS to make this type of decision, a human must check the underlying information, which might include peer reviews, witness interviews, personnel files, and other evidence, to make sure the AI recommendation is justified.

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