California Gov. Gavin Newsom signed a new law that prevents employers from relying solely on artificial intelligence to fire or discipline workers. 

The law requires a human to review employment decisions when AI is the primary factor and requires affected workers to receive information about the AI system and data used.

Newsom also signed measures restricting AI-based workplace surveillance and requiring companies to notify workers when AI contributes to mass layoffs or relocations. 

The legislation is a revised version of a similar bill Newsom vetoed in 2025 after lawmakers removed provisions he had objected to, CNBC has reported.

The new rules are scheduled to take effect July 1, 2027, making California one of the first states to establish specific legal limits on AI-based employment decisions.