Can Your Employer Use AI to Fire You? California Workers' Rights in 2026

Artificial intelligence is changing the workplace faster than most workers realize. According to a 2025 SHRM survey, 43% of employers now use AI in HR decisions — up from just 26% the year before [1]. AI tools are screening your resume before a human ever sees it, analyzing your facial expressions during video interviews, monitoring your performance in real time, and in some cases, making or influencing decisions about whether you get hired, promoted, or fired.

And here is the part that should concern every California worker: only 29% of companies maintain full human oversight over AI-driven rejection decisions — meaning 21% allow AI to eliminate candidates at every stage of the hiring process with no human review at all [2].

California is fighting back. New regulations that took effect October 1, 2025 make it clear that AI tools used in employment decisions are subject to the same anti-discrimination laws that have governed human decision-making for decades. And in 2026, the state legislature is pushing even further with landmark new legislation. Here is what you need to know.

Think an AI-driven decision cost you a job, promotion, or led to your termination?

Call Haulk & Herrera LLP at 415-745-3219 for a free, confidential consultation.

43%

of employers now use AI in HR decisions — up from 26% the year before [1]

21%

of companies allow AI to reject candidates at all stages with zero human review [2]

66%

of Americans say they would not apply for a job at a company that uses AI in hiring [2]

California's New AI Employment Regulations: What Took Effect October 1, 2025

On June 27, 2025, California's Civil Rights Council approved sweeping new regulations governing the use of automated decision systems (ADS) in the workplace. The rules took effect October 1, 2025, and apply to all California employers with at least five employees [3].

These are not new laws — they are clarifications of existing anti-discrimination law under the California Fair Employment and Housing Act (FEHA). The Civil Rights Council made explicit what was previously implied: if an AI tool discriminates, the employer is liable. Full stop.

What Counts as an Automated Decision System?

Broader than you might think. The regulations define an automated decision system (ADS) as any computational process that makes or assists in making employment decisions. This includes:

• Resume screening software that filters applicants based on keywords or patterns

• Algorithms that direct job advertisements to targeted groups

• Video interview tools that analyze facial expressions, speech patterns, or word choice

• Puzzle games or skill challenges used to evaluate applicants

• Performance monitoring software that scores or ranks employees

• Any AI tool used in hiring, promotion, pay, benefits, training, or termination decisions

Even tools that use basic "selection criteria" — not just advanced machine learning — fall under these rules [4].

What Are Employers Prohibited From Doing?

Under FEHA and the new regulations, employers cannot use any ADS that discriminates — intentionally or not — based on any protected characteristic, including:

• Race, color, or national origin (including natural hairstyles such as afros, braids, twists, and locs)

• Gender, gender identity, or gender expression

• Age (40 and older)

• Disability or medical condition

• Religion or religious dress and grooming practices

• Sexual orientation

• Pregnancy, childbirth, or breastfeeding

• Marital or family status

IMPORTANT: Employers are liable for discriminatory AI outcomes even if the discrimination was unintentional — and even if a third-party vendor built the tool. If your employer bought an AI hiring system from another company, they are still responsible for what it does [3].

The Puzzle Game Problem: AI Medical Inquiries

One of the most surprising provisions in the new regulations addresses personality tests, puzzle games, and interactive assessments increasingly used in hiring. If these tools elicit information about a disability — even indirectly through cognitive patterns, reaction times, or behavioral responses — they may constitute an unlawful medical inquiry under FEHA [3].

If you were required to complete a personality test, brain game, or behavioral assessment as part of a job application and were subsequently rejected, that process may warrant legal scrutiny.

Employer Record-Keeping Requirements

The regulations impose strict record-keeping obligations on employers. They must retain ADS-related data — including dataset descriptions, scoring outputs, and any bias audit findings — for a minimum of four years. This is significant for workers: it means evidence of discriminatory AI decisions cannot simply be deleted [4].

SB 947: California's "No Robo Bosses Act" of 2026

The 2025 regulations were a major step, but California lawmakers did not stop there. On February 2, 2026, State Senator Jerry McNerney introduced SB 947 — the No Robo Bosses Act — which would place additional restrictions on how employers can use AI specifically in discipline and termination decisions [5].

The California Senate approved SB 947 in June 2026. As of publication it has been referred to the Assembly Committee on Privacy and Consumer Protection, where it continues to advance.

What SB 947 Would Do

If signed into law, SB 947 would:

• Ban employers from relying solely on AI to fire or discipline workers. A human being must be involved in the decision.

• Require human oversight and independent verification when AI is used to assist in termination or disciplinary decisions.

• Prohibit predictive AI — systems that use personal data to "predict" what a worker will do in the future — from being used in disciplinary decisions.

• Require employers to notify workers if AI was used in a termination or disciplinary decision.

• $500 civil penalty per violation for employers who fail to comply.

NOTE: SB 947 has passed the California Senate but has not yet been signed into law as of publication. The regulations that took effect October 1, 2025 are already in full effect. This article will be updated when SB 947's status changes.

Your Rights as a California Worker Right Now

You do not have to wait for SB 947 to become law. Under the October 2025 FEHA regulations, California workers have the following rights today:

The Right to Be Free From Discriminatory AI

If an AI tool used by your employer screens you out, passes you over for promotion, rates your performance unfairly, or contributes to your termination based on a protected characteristic — even indirectly — you may have a discrimination claim. Learn more about workplace discrimination claims.

The Right to Challenge AI-Assisted Wrongful Termination

If AI played a role in a termination decision that was discriminatory, retaliatory, or otherwise violated California law, it does not matter that a machine made — or assisted in — the call. Employer liability follows the outcome, not the tool. Learn more about wrongful termination claims.

The Right to Request Human Review (Under SB 947 If Enacted)

If SB 947 becomes law, workers will gain the explicit right to know when AI was used in a termination or disciplinary decision and to have a human being accountable for that decision. Employers who fail to provide this notification face civil penalties.

The Right to File a Complaint With the CRD

If you believe an employer's AI tool discriminated against you, you can file a complaint with the California Civil Rights Department (CRD). The employer is required to retain four years of ADS data, which means evidence exists. An employment attorney can help you access and use it.

Real Ways AI Discrimination Can Happen to You

AI bias in employment is not theoretical. Here are documented ways it occurs:

Resume Screening Bias

AI screening tools trained on historical hiring data can learn to prefer candidates who resemble a company's existing workforce — systematically screening out women, people of color, or older workers who might otherwise be qualified. Amazon famously abandoned an AI recruiting tool in 2018 after discovering it penalized resumes that included the word "women's" [6].

Video Interview Analysis

AI tools that analyze video interviews score candidates on factors like tone of voice, word choice, facial expressions, and eye contact. These systems can inadvertently penalize candidates with accents, disabilities affecting facial expression or speech, or cultural communication styles that differ from the training data.

Performance Monitoring and Algorithmic Management

AI-driven performance monitoring is widespread in logistics, customer service, and gig work — tracking keystrokes, call times, delivery speeds, and more. Workers who take medical leave, have a disability affecting their pace, or are pregnant may be scored lower by systems that do not account for legally protected reasons for performance variation.

Job Advertisement Targeting

The CRD's own announcement on the new regulations cited a real example: job advertisement delivery systems that reinforced racial and gender stereotypes by directing cashier ads to women and taxi driver ads to Black workers [3]. This kind of algorithmic steering in recruiting is now explicitly prohibited.

What to Do If You Think AI Discrimination Affected You

1. Document everything you can. Note the tools, platforms, or systems involved. If you received any automated communications — rejection emails, performance scores, review outputs — save them.

2. Ask questions. You have the right to ask your employer what tools were used in decisions affecting you. Under SB 947, if enacted, they will be required to tell you when AI was involved in a termination.

3. File a complaint with the CRD. California's civil rights agency investigates discrimination claims, including those involving AI tools.

4. Contact an employment attorney promptly. Haulk & Herrera LLP represents California workers in discrimination and wrongful termination cases. Time limits apply — the sooner you act, the stronger your case.

Haulk & Herrera LLP offers free, confidential consultations for workers who believe AI-assisted decisions violated their rights. Call 415-745-3219 or email info@hhemploymentlaw.com.

Frequently Asked Questions

Is it legal for my employer to use AI to make hiring decisions in California?

Yes, but with strict limits. Employers may use AI tools in hiring as long as those tools do not produce discriminatory outcomes based on protected characteristics under FEHA. Under the October 2025 regulations, employers are liable for discriminatory AI outcomes even if unintentional and even if a third-party built the tool.

Can I be legally fired by an AI in California?

Under current law (the October 2025 regulations), a termination influenced by discriminatory AI is illegal — but AI-assisted terminations are not automatically unlawful. If SB 947 becomes law, employers will be prohibited from relying solely on AI in termination decisions and will be required to involve a human decision-maker.

What if the AI tool was built by a vendor, not my employer?

It does not matter. California's FEHA regulations make clear that employers are responsible for the AI tools they use — whether they built them in-house or purchased them from a third-party vendor. The employer cannot shift liability to the vendor.

How do I know if AI was used in a decision about me?

Currently there is no automatic disclosure requirement for most employment decisions, though under SB 947 — if enacted — employers would be required to notify workers when AI was involved in a termination. In the meantime, you can ask your employer directly. An employment attorney can also help you request relevant records through the legal process.

What if the AI discrimination was unintentional?

Intent does not matter under FEHA. If an AI tool produces a discriminatory outcome — even because of biases baked into its training data — the employer is still liable. This is one of the most significant aspects of California's new regulations and a major shift from how many employers assumed AI liability would work.

Haulk & Herrera LLP: Fighting for California Workers in the Age of AI

Employment law is evolving rapidly as AI reshapes the workplace. Attorneys Matthew A. Haulk and Jose M. Herrera stay at the forefront of these changes to ensure their clients' rights are protected — whether the decision was made by a manager or a machine.

If you were passed over for a job, denied a promotion, or terminated and believe AI played a role, you deserve answers. Haulk & Herrera LLP represents employees across California — with offices in San Francisco and Los Angeles — and offers free consultations for workers facing discrimination and wrongful termination.

Your consultation is free and confidential. Call 415-745-3219 or email info@hhemploymentlaw.com. Do not wait — time limits apply to employment claims in California.

Ready to take action? Schedule your free consultation with Haulk & Herrera LLP.

Sources

This article is based on official government regulations, legislative records, and published research. Last reviewed and updated July 2026.

[1]	SHRM Survey: AI Adoption in HR Surged From 26% to 43% Between 2024 and 2025. EmployerBranding.news — AI in Hiring Statistics 2026, 2026. https://employerbranding.news/resources/ai-in-hiring-statistics-2026-adoption-bias-trust-and-regulation/
[2]	AI in Hiring Statistics 2026: Adoption, Bias, Trust and Regulation — Only 29% of Companies Maintain Full Human Oversight on AI Rejections. CoverSentry — AI in Hiring Statistics 2026, 2026. https://www.coversentry.com/hiring-ai-statistics
[3]	Civil Rights Council Secures Approval for Regulations to Protect Against Employment Discrimination Related to Artificial Intelligence. California Civil Rights Department (Official Government Source), June 30, 2025. https://calcivilrights.ca.gov/2025/06/30/civil-rights-council-secures-approval-for-regulations-to-protect-against-employment-discrimination-related-to-artificial-intelligence/
[4]	California's New AI Regulations Take Effect Oct. 1: Here's Your Compliance Checklist. Jackson Lewis LLP, September 2025. https://www.jacksonlewis.com/insights/californias-new-ai-regulations-take-effect-oct-1-heres-your-compliance-checklist
[5]	SB 947: No Robo Bosses Act — California Automated Decision Systems in the Workplace Act. CalMatters Digital Democracy / California Legislature, 2026. https://calmatters.digitaldemocracy.org/bills/ca_202520260sb947
[6]	10 FAQs About California's New Algorithmic Discrimination Rules. Ogletree Deakins, 2025. https://ogletree.com/insights-resources/blog-posts/10-faqs-about-californias-new-algorithmic-discrimination-rules/
[7]	California's New AI Anti-Discrimination Rules Under FEHA — Employer Compliance. Hinshaw & Culbertson LLP, 2025. https://www.hinshawlaw.com/en/insights/blogs/employment-law-observer/employers-ensure-you-are-compliant-with-californias-new-ai-anti-discrimination-rules-under-the-feha

This article is for informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. For advice about your particular situation, please consult a qualified California employment attorney.