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California does not have one blanket rule requiring employers to tell every applicant or employee whenever they use an automated hiring or employment tool. The applicable requirement depends on what the system does: the state’s 2025 employment-discrimination regulations govern automated systems used in employment decisions; a 2026 bill summary describes a separate notice for certain discipline or termination decisions beginning July 1, 2027; and another bill summary addresses certain automation-related Cal/WARN events.
Which California rule applies?
| Rule | Situation covered | Disclosure or other obligation | Timing stated in the available source |
|---|---|---|---|
| FEHA automated-decision regulations | Automated systems used in employment decisions | Antidiscrimination protections and recordkeeping requirements; the reviewed agency materials do not establish a universal notice that a tool was used. | Effective October 1, 2025. |
| SB 947 | An employer primarily relies on an automated decision system (ADS) for employee discipline or termination. | A bill summary describes written postuse notice to the affected employee, plus a way to request a description of the employee data primarily used. | The summary states July 1, 2027. |
| SB 951 | Certain Cal/WARN displacement events caused in whole or substantial part by AI or other automation replacing or automating positions. | A bill summary describes additional notice information, including the job functions to be automated. | The summary reviewed does not establish the operative date or all requirements. |
The SB 947 and SB 951 descriptions here are based on available bill summaries, not confirmed chaptered statutory text. Before relying on them for a particular decision or notice, check the enacted text and any applicable agency guidance for covered definitions, recipients, deadlines, exceptions, thresholds, and effective dates.
Does an employer have to disclose AI use in hiring?
FEHA rules are not a universal AI-use notice
The Civil Rights Council’s employment regulations, approved by the Office of Administrative Law and effective October 1, 2025, clarify how existing antidiscrimination law applies to AI, algorithms, and other automated decision systems. The California Civil Rights Department (CRD) describes recruitment, hiring, and promotion among the covered employment contexts. The agency materials reviewed do not establish a general requirement to notify every applicant whenever an automated tool is used.
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Discrimination protections still apply
Using an automated tool does not remove an employer’s obligations under California’s Fair Employment and Housing Act (FEHA). The CRD says the rules address potential discriminatory harm based on protected characteristics. It also says employment records, including automated-decision data, must be kept for at least four years. That is a retention requirement, not a notice to applicants that a tool was used.
The CRD further cautions that some tests or assessments may elicit disability information and potentially constitute unlawful medical inquiries. That concern is about what an assessment asks or reveals, rather than a general disclosure rule for all hiring software.
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When does an employee get notice of an automated discipline or termination decision?
California’s SB 947 was included among the worker-protection measures Governor Gavin Newsom announced signing on September 30, 2026. The Governor’s announcement summarized the policy as requiring real-person review by prohibiting employers from relying only on AI for disciplinary action or termination.
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The summary states that SB 947 begins July 1, 2027. The exact chaptered statutory wording was not confirmed in the materials available here, so the complete notice contents, deadlines, definitions, exceptions, and enforcement details should not be inferred from the summary alone.
What must be disclosed when automation causes layoffs?
SB 951 addresses a different context from an individual hiring, discipline, or termination decision. The Governor’s September 30, 2026 announcement identifies it as “Employment: technological displacement: notice.” The available CalMatters Digital Democracy bill summary describes additional information in certain Cal/WARN notices for a mass layoff, relocation, or termination caused in whole or substantial part by AI or other automated technology replacing or automating positions. The summary says the notice includes the job functions to be automated.
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This is not a general per-applicant AI disclosure, nor is it the same trigger as SB 947’s described notice to an employee after a qualifying disciplinary or termination decision. The summary alone does not settle the covered-employer thresholds, full information required, exceptions, or operative date; those details require confirmation in the enacted statute.
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What employers and employees should check
- For hiring or promotion: Determine whether the tool makes or facilitates an employment decision, and assess it under applicable FEHA protections. The 2025 rules do not, in the reviewed agency materials, create a blanket notice for every use.
- For employee discipline or termination: If relying on SB 947, verify the enacted text and its effective date and requirements before deciding whether a particular use triggers notice or a data-description request right.
- For automation-related displacement: If a potential event may fall under Cal/WARN, check SB 951’s enacted text for coverage and the required notice contents rather than treating it as an individual-decision notice.
- For records and assessments: Account for the CRD’s stated four-year minimum retention period for employment records, including automated-decision data, and review whether an assessment may elicit disability information.
CRD Director Kevin Kish said of the 2025 regulations: “These new regulations on artificial intelligence in the workplace aim to help our state’s antidiscrimination protections keep pace.”
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This overview reflects the information available as of October 4, 2026. It is general information, not legal advice for a specific employer, employee, or decision.
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