Free NewsletterPro Login

Warning: Undefined variable $stocks in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: Undefined variable $funds in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472
/* the link was here */

California outlaws AI‑only firings with SB 947, the No Robo Bosses Act

Published Oct 1, 2026
Share:
Summary:
  • Governor Gavin Newsom signed SB 947, blocking California employers from using AI alone to discipline or terminate workers.
  • If AI is the main driver in a discipline or firing decision, a human must verify it with other records, and the worker must get written notice, details on the data used, and a real person to contact.
  • The bill, written by Senator Jerry McNerney and backed by Lorena Gonzalez and organized labor, returns after an earlier veto and lands amid rising public skepticism about AI at work.

What the law does

California just set a hard boundary for employer use of AI in discipline and terminations. SB 947, the No Robo Bosses Act, prohibits companies from relying solely on automated decision tools to fire or discipline employees and curbs the ability to make those systems the main driver in such calls.

When an automated system chiefly drives a discipline or firing call, a person must double‑check the result using additional sources like supervisor assessments, coworker feedback, and the employee's personnel records. In those cases, the employer must give the worker a written explanation stating that AI played the lead role, outline which employee data were analyzed, and provide a specific human representative to answer questions about the decision.

How it got here

McNerney, a Democrat, first introduced the idea in 2025 after a strong push from labor to set guardrails on AI in management decisions that hurt workers. The measure cleared both chambers with large majorities but hit a dead stop in October when Governor Newsom vetoed it. He warned at the time that while unregulated employer use of automated decision tools can harm workers, the bill then on his desk went too broad by requiring advance notices for even the most routine software.

McNerney brought the bill back in February and trimmed it. He removed the pre‑notification requirement that drew Newsom's objection and also cut language that would have covered gig workers, which had been blasted by Uber and Lyft. Those changes reduced, but did not erase, opposition from business and tech groups.

Among the strongest objections was from Robert Singleton, who serves as the Chamber of Progress' senior director overseeing policy and public affairs in California and the US West. In a letter urging a veto earlier this month, he argued the bill never defines when an employer "primarily relies" on an automated tool, leaving no clear line between software that merely informs a manager and software that becomes the main basis for a decision. He added that uncertainty about whether everyday tools count as regulated systems could chill the use of technology that improves consistency, flags safety risks, or helps managers make better choices.

Who backed it and how people are reacting

Organized labor was central.

The Electronic Frontier Foundation called the new law a "strong step toward giving workers the protections they need in workplaces that use automated decisionmaking systems."

When workplaces and rules change, staying steady with investments builds security, so get the free Always Be Buying E-Book today.

The politics are not cleanly partisan. This month, Steve Hilton, the Republican nominee for governor in California, backed the bill and criticized the California Chamber's position. "In some ways, I don't think SB 947 goes far enough," and he added that companies should be barred from using AI to determine whether a person is terminated, demoted, has their regular hours reduced, or is removed from an income program.

The wider AI moment and what it means for your money

Newsom has been active on AI policy lately. Earlier this month he signed a broad executive order focused on the potential existential risks posed by powerful models, saying the federal government was abdicating "its responsibility to protect Americans." He also approved a measure to set up a state process for independent evaluation and audits of AI models. All of that is unfolding as he weighs a possible 2028 presidential run and as AI policy stakes rise for Democrats and Republicans alike.

Public sentiment is shifting too. A July Gallup poll found 39% of Americans say AI does more harm than good, up from 31% in 2025. Pew Research reported in August that 71% think AI will "take people's jobs," about 7 percentage points higher than roughly two years earlier.

On the ground, the nonprofit United for Respect reported in May that Walmart and Amazon workers are increasingly worried HR decisions are being automated, and its push last summer for more AI disclosure at Walmart failed to pass. Meta also faces a July lawsuit from former employees who claim AI‑assisted tools sorted and chose workers for layoffs, and that the process disproportionately impacted individuals who had used medical or family leave. The company has denied those allegations.

The U.S. stands out for how widely algorithmic management has spread. An OECD survey published late last year reported that 90% of U.S. managers say their firms use one or more tools to direct, track, or evaluate workers.

California is now the first state with this level of oversight on workplace AI, going further than rules elsewhere. Illinois' Public Act 103‑0804, effective since January, requires notifying employees when AI is used for certain employment purposes but does not ban deploying agentic digital systems for those decisions. Other states are circling the issue.

Similar bills have been floated in New York, Louisiana, and New Jersey without action so far. And in Washington, U.S. Senators Ed Markey and Brian Schatz introduced a federal No Robo Bosses Act in June to stop employers from "relying on automated decision systems to make work‑related decisions," though it went nowhere in a Congress moving slowly on AI rules. California's step may be the nudge other states need.

For your portfolio, here is the takeaway: if a company builds, sells, or uses automated decision systems in HR, California just made documentation, disclosure, and a genuine human check part of the cost of doing business. That can affect compliance budgets, timelines for personnel actions, and legal exposure. As regulators and voters keep pressing on AI transparency and accountability, expect more companies to spell out how they combine software with human judgment, especially in states looking to follow California's lead.

Even as workplace rules and tech evolve, consistent investing pays off over time, grab the free Always Be Buying E-Book.

Disclosure

Recent News

1 2 3 … 90

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

September 30, 2026
Dividend Investing vs. Growth Investing: Why the Slower Portfolio Can End Up Bigger
  • "What stock should I buy?" is the wrong first question. Growth, income, or wealth preservation comes first, and the goal changes which stocks even make sense.
  • At $500 a month for 30 years, 13% growth builds about $1.75 million. 10% growth plus a reinvested 4% dividend builds a little more than $2.2 million and pays a little more than $80,000 a year.
  • Income investors have US dividend ETFs, REITs, and international dividend funds to study. Growth investors have the Nasdaq 100, AI and chip funds, and small caps. None of it is a recommendation.
Read More
September 29, 2026
Why Is Gold Going Down? A 5.2% Treasury Yield Just Took Its Job
  • President Trump rejected Iran's deal to reopen the Strait of Hormuz, oil prices jumped back up, and gold fell instead of rising.
  • Treasury yields hit their highest level in more than 20 years, so investors sold gold and bought Treasuries that pay interest.
  • Higher Treasury yields make the national debt, mortgages, car loans, and credit cards more expensive, with the Fed's next rate decision due October 28.
Read More
September 28, 2026
The Strategic Bitcoin Reserve: Why the Government Wants Bitcoin to Explode
  • The US government holds about 328,000 Bitcoin, worth roughly $25 billion, and since a 2025 executive order it keeps seized coins instead of selling them.
  • Washington wants a bigger pile of assets so its $40 trillion national debt looks smaller next to them, which lets it keep borrowing and spending.
  • Bitcoin's wild price swings, and a government holding a coin built to escape governments, are the two risks investors need to watch.
Read More
September 25, 2026
BRIEFS EXCLUSIVE: 43% Of Respondents Say Bills Outran Their Income Over Past Two Years
  • 43% of the 494 Market Briefs readers surveyed said their bills grew faster than their income over the past two years, even though 79% could cover a surprise $5,000 expense tomorrow.
  • Half of readers own gold or crypto, the two classic bets against a weaker dollar, and only 13% bought nothing at all in the last 12 months.
  • The median reader says it takes $150,000 a year to feel financially secure, about $62,000 above the U.S. median household income.
Read More
September 25, 2026
The Economy Is Booming. So Why Did Stocks and Bonds Fall Together?
  • S&P Global says the US economy is growing at its fastest rate since 2021, with corporate profits up 28.9% in a year, almost four times the historical average.
  • Stocks and bonds fell at the same time, which is not how the two markets normally behave, because Treasury yields above 5% now compete with stocks for investors' money.
  • Jaspreet Singh lays out three ways to invest through a shift like this: always be buying, buy the crash, or follow the money before it hits the headlines.
Read More
September 24, 2026
The 2026 Economic Reset Is Starting: Are We in a Recession, or Is the Pain Still Ahead?
  • The Federal Reserve has flipped from stimulating the economy to fighting inflation with higher interest rates, while the White House still wants growth at almost any cost.
  • The national debt tops $40 trillion, has outgrown the entire U.S. economy, and its interest payments are now the government's fastest-growing expense.
  • Higher rates bring pain for private equity, private credit, and speculative assets, but they open opportunities for investors holding cash, treasuries, and value assets.
Read More
September 23, 2026
Are We in a Recession? Without AI, America Might Already Be in One - and Washington Knows It
  • The White House attributes about three quarters of U.S. economic growth to AI, and many believe the economy would already be in a recession without it.
  • Washington has three reasons it cannot let the AI boom slow down: staying the world's superpower, outgrowing $40 trillion in national debt, and protecting a government stock portfolio worth billions.
  • Every market goes through booms and busts, and investors who understand the cycle get to buy the downturn instead of panic-selling with the crowd.
Read More
September 22, 2026
Will Interest Rates Go Down in 2026? Where the Money Moves Either Way
  • The Fed is leaning toward higher rates to fight 4% inflation, while the White House and a cracking job market push the other way.
  • If rates rise, money has tended to move toward short-term Treasuries, floating-rate loans, energy, banks and dividend payers.
  • If rates fall, it has tended to move toward gold, silver and Bitcoin, real estate, small caps, the S&P 500 and speculative bets.
Read More
September 21, 2026
How the Federal Reserve Makes Money - and Why It Just Posted Its Biggest Loss Ever
  • For 109 years the Federal Reserve created money, lent it to the U.S. government and handed the interest it collected back to Washington - almost $1 trillion in the decade starting in 2011.
  • Pandemic-era lending locked the Fed into earning about 2% on trillions of dollars while it now pays banks around 4%, producing a record loss of hundreds of billions in 2026.
  • The Fed covers its losses by creating money and the government covers its lost revenue by borrowing, and both feed the inflation that eats at the dollars in your account.
Read More
September 18, 2026
Kevin Warsh Just Defied Trump: What the Fed Rate Hike Means for Your Money
  • The Fed raised rates for the first time since 2023 in a unanimous vote led by Kevin Warsh, the chairman President Trump appointed to cut them.
  • Higher rates make the $40 trillion national debt, business loan resets and mortgages more expensive, but they strengthen the dollar and pay investors holding cash.
  • The war with Iran is pushing up oil, grocery and chip prices, another hike is likely in 2026, and recession talk is about to get louder.
Read More
1 2 3 … 28
Share via
Copy link