10-27-2026
In August, we reported on “What Happens When AI is in Charge?” and the limitations of relying on AI to manage and discipline employees. California has weighed in and under its new law, California employers may not rely solely on an automated decision system for discipline or termination decisions. A human reviewer must independently verify the automated decision, using information outside the system. Employers must also notify employees when primarily relying on an automated system to make employment decisions. The law goes into effect on July 1, 2027.
California employers should review their use of AI when monitoring employees and making employment decisions to ensure compliance with these new regulations. They should thoroughly assess how their tools collect and use data.