The No Robot Bosses Act restricts how employers can use artificial intelligence and automated systems to make decisions about hiring, firing, pay, scheduling, and other employment matters. The law applies to employers with 11 or more workers, as well as government agencies and public employers.

Under this bill, employers cannot rely solely on automated systems to make employment decisions. If they do use AI or algorithmic tools, they must first test the system to ensure it works properly and doesn't discriminate based on race, color, religion, sex, national origin, age, disability, or genetic information. The system must be tested annually by an independent third party, and those results must be made public. Employers must also have a human review and approve any decision made by an automated system before it takes effect.

When an automated system is used to make a decision about a worker or job applicant, the employer must tell that person within seven days exactly what the system did, what information it used, and how it reached its conclusion—all explained in plain language. Workers can then dispute the system's output or appeal the decision to a human manager. The bill also lets workers opt out of being managed by automated systems entirely and request a human manager instead.

The law creates a new Technology and Worker Protection Division within the Department of Labor to enforce these rules. Workers who believe their rights have been violated can sue their employer in federal court and potentially recover damages ranging from $5,000 to $40,000 per violation, plus attorney's fees. The bill also prevents employers from forcing workers into arbitration agreements that would prevent them from taking legal action or joining class-action lawsuits over violations.