On October 13, 2025, California Governor Gavin Newsom vetoed the proposed “No Robo Bosses Act” (SB 7), which would have imposed new regulations on employers’ use of artificial intelligence (AI) and other automated decision-making systems (ADMS) in employment decisions. Governor Newsom cited concerns that the bill’s restrictions were overly broad and could negatively impact California businesses. He ultimately concluded that the legislation was not the right solution for the issues it sought to address.

The “No Robo Bosses Act,” introduced by Senator Jerry McNerney (D-Pleasanton), would have required employers to notify workers before using ADMS that could impact employment, and would have prohibited employers from relying solely on these systems for disciplinary actions, terminations, or deactivations. The bill also would have given employees the right to request information about the data these systems use in employment decisions.

Governor Newsom’s veto message expressed concern that such restrictions could hinder businesses from using technology to recognize and reward high-performing employees, for example, by using systems that factor in customer ratings. He also emphasized that the bill did not directly address specific incidents of misuse or potential discrimination arising from AI-driven employment decisions. Instead, he described the proposed regulations as “unfocused,” noting that they failed to offer targeted solutions for the actual risks posed by AI in the workplace.

What’s Next?

Although SB 7 will not become law in its current form, lawmakers are expected to develop a revised bill in 2026 to address many of governor’s the stated concerns. In the meantime, California continues to advance alternative regulations regarding AI and automated decision-making in employment. The California Privacy Protection Agency (CPPA) is developing new rules to clarify how employers can use AI in decisions affecting employees and independent contractors. These regulations are set to take effect on January 1, 2027, and are expected to enhance transparency, giving workers a better understanding of how their personal data is used by AI in the workplace.

For more information or guidance on the use of AI in employment decisions or how these anticipated changes may affect your business, please contact our team at Kilpatrick.