What the Veto of the No Robo Bosses Act Means for California Workers and AI

Employers are increasingly turning to artificial intelligence to shape decisions in the workplace. From hiring and promotions to scheduling and performance reviews, AI is being used in ways that can have a significant impact on job applicants and employees. Let’s look at some recent developments in California law concerning how automated tools are regulated and what protections workers have.

The No Robo Bosses Act, also known as Senate Bill 7, was vetoed in October 2025. The bill would have required employers to provide written notice to workers and job applicants when automated decision-making systems were used to make employment decisions, including hiring, promotions or termination. It also meant that employers couldn’t rely on AI tools alone to fire or discipline employees and imposed civil penalties for violations.

The law was set to be the first of its kind in the United States to impose strict limits on workplace AI. Governor Newsom said he rejected the bill because it would have also applied to routine workplace software, such as administrative or scheduling tools. He described the bill’s restrictions on the use of AI systems as “overly broad.” Additionally, it didn’t directly address specific instances of AI misuse. 

The veto means that California currently doesn’t have a law specifically limiting how employers use AI in employment decisions. The governor acknowledged growing concerns about the potential for discrimination with the unregulated use of such technology.

California employees still have protections under existing law. The Fair Employment and Housing Act (FEHA) makes it unlawful for employers to make decisions based on a worker or job applicant’s protected characteristics, such as race, gender, religion, age or disability.

Earlier this year, the California Civil Rights Department finalized regulations on using automated decision systems in employment. Starting October 1, 2025, these rules require employers to ensure any AI or automated system used in hiring, promotions or other employment decisions doesn’t discriminate against job applicants or employees based on FEHA-protected characteristics.

A recent lawsuit against Workday Inc. highlights how automated systems can negatively affect workers. The HR software company was accused of using AI-driven screening tools that allegedly discriminated against older applicants and individuals with disabilities. The court found the claims plausible under the Age Discrimination in Employment Act and California law.

Even without the No Robo Bosses Act, workers have avenues to challenge discriminatory treatment. Knowing your rights under California law can help you take action if your employer’s conduct seems unfair. Discrimination in any aspect of employment is unlawful.

If you believe you have been subjected to workplace discrimination, an experienced San Francisco employment lawyer can provide guidance. McCormack Law Firm is dedicated to protecting the rights of workers and helping them resolve employment disputes. Contact us today to schedule a free initial consultation to learn more.

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this case.