TLDR: California Governor Gavin Newsom has vetoed Senate Bill 7, known as the ‘No Robo Bosses Act,’ which sought to regulate the use of artificial intelligence in employment decisions like firing and discipline. Newsom stated the bill was ‘overly broad’ and contained ‘unfocused notification requirements,’ arguing it failed to target specific misuses of AI while potentially hindering businesses, including those using basic digital tools. The decision marks a setback for labor unions advocating for human oversight in AI-driven workplace decisions, while being seen as a win for tech and rideshare companies.
Sacramento, California – Governor Gavin Newsom of California has officially rejected Senate Bill 7 (SB 7), widely known as the ‘No Robo Bosses Act,’ a landmark piece of legislation aimed at regulating the increasing use of artificial intelligence (AI) in workplace employment decisions. The veto, announced around October 17, 2025, prevents California from becoming the first state to implement such comprehensive restrictions on AI in human resources.
SB 7, introduced by Democratic State Senator Jerry McNerney, sought to mandate human review for employment termination and disciplinary actions primarily determined by AI tools. It proposed strict limits on employers’ reliance on AI for decisions related to discipline, termination, and scheduling. Furthermore, the bill aimed to prevent AI from interfering with union rights, predicting worker behavior, or inferring protected characteristics such as religion. Violations would have incurred civil penalties, enforced by the state labor commissioner and public prosecutors.
In his veto statement, Governor Newsom acknowledged the growing concerns regarding the misuse of automated workplace tools but criticized the bill for being ‘overly broad’ and imposing ‘unfocused notification requirements.’ He argued that the legislation failed to differentiate between high-risk algorithmic tools, such as AI-driven discipline systems, and more innocuous administrative technologies, like basic scheduling or workflow management software. Newsom stated that the bill ‘fails to directly address incidents of misuse’ and could potentially be ‘harmful to California businesses’ by constraining their operations.
The Governor also suggested that some aspects of the bill might be duplicative of forthcoming regulations from the California Privacy Protection Agency. He expressed concerns that the broad restrictions on AI tools could inadvertently remove ‘a potentially valuable tool for rewarding high-performing employees.’
The veto represents a significant win for tech companies, particularly rideshare giants like Uber and Lyft, which had actively lobbied against the bill, arguing it would impede their ability to automatically manage their workforce. Conversely, it is a notable defeat for labor unions, including the California Federation of Labor Unions, which had championed the bill as a crucial step to ensure human accountability in critical employment decisions. Union advocates stressed the importance of ‘bosses having souls’ and warned against unchecked ‘robo-bosses.’
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While SB 7 is now off the table, Governor Newsom indicated that future legislation should focus on addressing specific concerns and employer actions rather than creating an overly broad regulatory scheme. The debate over AI’s role in the workplace is expected to continue, with other states reportedly considering similar measures to regulate this rapidly evolving technology.
