Bill
SB 947
SB 947 prohibits using automated decision systems as the sole basis for discipline or termination and requires human corroboration and postuse notices when ADS influences employmen
Purpose and intent
- SB 947 aims to regulate the use of automated decision systems (ADS) in the workplace in California. It prohibits certain uses of ADS, establishes worker rights to data and notice, and creates enforcement mechanisms to deter retaliation against employees who exercise those rights. The bill positions itself as a worker-protective framework addressing algorithmic management and its impact on employment decisions.
Key provisions and changes
1) Definitions (Chapter 1)
- ADS: Any computational process using machine learning, statistical modeling, data analytics, or AI that outputs a simplified result (e.g., score, classification, or recommendation) used to assist or replace human discretionary decisions and that materially impacts a natural person.
- ADS output, AI, worker, worker data, and employment-related decisions are defined to set scope.
2) Employer prohibitions and limits (Chapter 2)
- Prohibitions on ADS use for:
- Violating labor, health and safety, employment, or civil rights laws.
- Inferring a worker’s protected status.
- Conducting predictive behavior analysis on a worker.
- Identifying or taking adverse action against rights exercised under employment laws.
- Using individualized worker data to inform compensation, unless justified by task-related cost differentials or task relevance.
- Prohibition on relying solely on ADS for disciplinary, termination, or deactivation decisions.
- When ADS is used to assist such decisions, employers must have a human reviewer independently corroborate the ADS output with additional information (e.g., supervisor evaluations, personnel files, peer reviews, witness interviews).
- If the ADS cannot be corroborated or is inaccurate, it cannot be used to discipline/terminate/deactivate.
- Prohibition on using customer ratings as the sole or primary input for employment decisions.
- Employee right to request and receive a copy of the most recent 12 months of their own data used by the ADS (limit: once per 12 months).
- Privacy safeguard: worker data provided to employees must be anonymized where appropriate.
3) Postuse notice (Chapter 3)
- If an employer relies primarily on ADS for a disciplinary, termination, or deactivation decision, the employer must issue a written postuse notice at the time the decision is communicated.
- Notice must be plain language, standalone, in the employee’s routine language, and delivered via simple method (e.g., email or hyperlink).
- Contents of the postuse notice:
- Acknowledgment that an ADS was used.
- Confirmation that a human reviewer conducted an independent corroboration.
- Contact information for further questions and rights to access data and corroborating evidence.
- Prohibition on retaliation for exercising rights under the bill.
- Data access responses must include: the specific decision, the worker’s input and the ADS output, additional corroborating information, the ADS vendor/product name, and any completed impact assessments.
4) Enforcement and remedies (Chapter 4)
- Prohibits retaliation against workers for exercising rights, filing complaints, cooperating in investigations, or enforcing the measure.
- Enforcement options:
- California Labor Commissioner enforcement, including temporary relief and civil action.
- Civil actions by affected workers or their exclusive representatives for damages (including punitive damages).
- Possible enforcement by a public prosecutor.
- Penalty: $500 civil penalty for violations.
- Non-preemption: local ordinances can provide equal or greater protections.
- Privacy/contractual caveats: the measure does not override compliant contracts with explicit waivers, and it accommodates federal contracting requirements.
- Severability: the act’s provisions are severable.
Affected parties and scope
- Employers across California (including state government entities, cities, counties, school districts, and contract employers) that use or plan to use ADS in employment decisions.
- Workers and, where applicable, the workers’ exclusive representatives.
- Applies to workplace decisions with material employment impact, subject to exemptions (e.g., collective bargaining agreements that waive the provisions with protections).
Timeline and status
- As amended, SB 947 proceeded through committees with amendments and is set for hearings in 2026. Action history shows multiple committee referrals and amendments in 2026, with a May 4 hearing noted.
Impact considerations
- Could increase transparency around algorithmic decisions and provide workers with actionable data rights.
- May slow or modify disciplinary processes where ADS are used, requiring human corroboration and postuse notices.
- Creates a standardized enforcement framework and potential penalties to deter violations.
- Cements a statewide baseline that could interact with local ordinances and privacy regulations.
Compiled from official sources — confirm details with the bill’s official record.
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