Governor Newsom Vetoes SB 7 — AI Accountability in the Workplace Remains
The story of California’s No Robo Bosses Act (SB 7) is a reminder that AI in the workplace is no longer a futuristic concept — it’s here, and it’s shaping decisions that affect real people’s jobs and livelihoods. Governor Gavin Newsom has vetoed SB 7, a bill that would have prohibited employers from relying solely on AI when making disciplinary, termination, or deactivation decisions (read his veto message here: Governor’s letter). The bill aimed to give workers more transparency and control when automated systems are used to make employment decisions, including promotions, discipline, or termination, and to ensure meaningful human oversight. For a detailed explanation of the Act itself, see our previous post: No Robo Bosses Act: What This New AI Bill Could Mean for the Future of Work.
So why did the governor veto SB 7? In plain English, there were several concerns. First, Newsom described the bill as overly broad, applying sweeping rules that could touch almost any software or automated system used in HR. That vagueness could create confusion about what exactly employers were required to do and open the door to lawsuits or compliance headaches. Second, there were economic concerns. Smaller businesses, in particular, could face high costs to audit AI tools, train staff, and document decisions, all while balancing day-to-day operations. Third, there was a worry about stifling innovation. Overly rigid rules could discourage companies from using AI tools that, when implemented correctly, can improve efficiency, reduce bias, or enhance decision-making. Finally, the governor pointed out that some worker protections already exist under civil rights, privacy, and employment laws, suggesting that the bill might be premature in imposing new requirements.
Even though SB 7 didn’t pass, the conversation around AI in the workplace isn’t going away. Advocates, labor groups, and digital rights organizations remain focused on ensuring that automated systems are fair, transparent, and accountable. California is moving forward with other regulations related to AI discrimination, privacy, and employee data rights. This means that while SB 7 is vetoed, the goals it aimed to achieve — human oversight, transparency, and accountability — are likely to reappear in some form in future legislation.
For employers, this is a crucial moment to prepare. Even without a signed law, understanding what SB 7 intended helps organizations take proactive steps. That might include auditing existing AI tools, updating policies around how AI is used in HR, training managers to make responsible decisions, and keeping clear documentation of AI-assisted employment outcomes. These measures aren’t just about compliance; they’re about building trust with employees and reducing the risk of legal or reputational issues down the line.
Looking ahead, future legislation may take a more targeted approach. Lawmakers could focus on only the highest-risk decisions, such as firing, demotion, or major disciplinary actions. Compliance requirements might be phased in gradually, or safe-harbor frameworks could be introduced to give employers clear guidance. The key takeaway is that AI governance in the workplace is evolving rapidly, and organizations that start preparing now will be better positioned to adapt as laws emerge.
The AI Shift helps organizations navigate aI governance, implement compliance-ready policies, and train managers to use AI responsibly. Stay ahead of evolving workplace AI regulations and ensure your organization is prepared. Contact us today to learn more.