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California Senate Moves To Restrict AI Use In Worker Discipline

Senate Bill 947 would limit employers’ use of automated decision systems in employee discipline and termination decisions. 

The California Senate voted to advance Senate Bill 947, a proposal that prohibits employers from using AI-driven automated decision systems (ADS) to take disciplinary actions, including firing, without human oversight and verification. Further, employers would be required to disclose whether they use ADS in any disciplinary actions. Under the proposed law, employers are prohibited from retaliating against workers who seek to exercise their rights under the bill’s provisions.

The bill, introduced by State Senator Jerry McNerney (D-Pleasanton), also prohibits the use of ADS to predict employee behavior. Under the proposal, employers would be required to provide workers with a copy of the past 12 months of their own data that was primarily used by the system in making disciplinary, termination, or deactivation decisions. 

Senate Bill 947 assigns enforcement to the California Labor Commissioner. The bill would authorize the commissioner to take action against employers that violate its requirements and would allow workers to bring a civil action for damages. It also authorizes public prosecutors to bring civil enforcement actions and sets specified penalties, including a $500 civil penalty for employers that violate the provisions.

As of this writing, the measure has advanced in the Senate but has not yet been enacted; it awaits further consideration by the Legislature.

Clayton Rifkind

Clayton Rifkind is the Founder and Senior Editor of AI Risk Today. He also advises on business development for ESG Today, a leading source of ESG investment news and research for institutional investors and corporate leaders. He has 20+ years of experience in B2B technology, leading strategy and execution of go-to-market plans across software, enterprise platforms, and mobile applications. He founded two consultancies advising startups and Fortune 1000 companies, including Autodesk, Intel, and Microsoft. He began his career in the San Francisco advertising scene working with brands such as Hewlett-Packard, Intel, Microsoft, Symantec, and Wells Fargo. Clayton launched AI Risk Today in 2025 after two decades of watching enterprises adopt transformative technologies, and seeing how often risk, governance, and compliance considerations lagged behind. His reporting draws on primary sources including regulatory filings, court documents, and official announcements, with a focus on what AI developments mean for the executives accountable for managing them. Reach him at Reach him at [email protected] or on LinkedIn.

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