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Technology

Oct. 23, 2026

From algorithm to adverse employment action: California's new AI employment laws

California's new AI employment laws require greater human oversight of automated disciplinary and termination decisions and expanded disclosure of technology-driven layoffs, creating new compliance obligations and litigation risks for employers.

Michael Manoukian

Partner
Lathrop GPM

Labor and Employment practice

See more...

From algorithm to adverse employment action: California's new AI employment laws
Shutterstock

Artificial intelligence can screen résumés, measure productivity, flag alleged misconduct and help determine when a position is no longer needed. But when an algorithm influences an employee's livelihood, who is accountable for the decision, and what must an employer disclose when technology recommends the elimination of the job itself?

California has answered those questions, at least in part. On Sept. 30, 2026, Senate Bills 947 and 951 were signed into law, establishing new r...

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