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Throughout 2026, the California legislature has taken numerous steps to regulate how employers use Artificial Intelligence (AI) in workplace surveillance, automated decision-making, and workforce planning. Governor Gavin Newsom signed several new laws and regulations affecting AI use in the employment context, all set to go in effect in the new year.
Overview of New California AI Laws in the Workplace
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The “No Robo Bosses Act” will regulate how employers use automated decision systems (ADS) for hiring and firing decisions or adverse actions based on inferences of an employee’s protected status or likelihood to exercise legal rights. It requires the oversight of human corroboration for ADS-based disciplinary or termination decisions and requires post-use notice when an employer primarily relies on ADS for such decisions. Violations of this act carry a civil penalty of $500.
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Cal/WARN Amendment amends the California Worker Adjustment and Retraining Act (“Cal/WARN”) to require additional notice when a mass layoff, relocation, or termination is caused “in whole or substantial part” by AI or other automated technology. The notice must identify the displacement as “technology-related” and describe the affected positions, automated job functions, and technology involved. The Employment Development Department (EDD) must also publish summaries of these notices. Violations carry a civil penalty of up to $500 for each day of violation, and the employer will also be liable for back pay and the value of benefits for the notice period.
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Workplace Surveillance Tool bill will restrict how employers may use workplace surveillance tools, including systems that collect employee data, activities, communications, biometrics, or behaviors. It expressly prohibits using these tools to infer or predict emotional states or collect “neural data,” which is defined as information generated through measurements of the central or peripheral nervous system. While the legislation primarily targets emerging and novel technologies rather than traditional workplace monitoring systems, employers should not presume that a technology is compliant based on its marketed use. Technologies that aim to measure attention, stress, focus, sentiment, or emotional responses may present significant compliance risks. Violations carry a civil penalty of up to $500.
Moving Forward – What To Look Out For
California’s AI legislation emphasizes transparency and accountability when it comes to the use of AI technology in the workplace. Employers and employees should be on the lookout for more legislation that ensures there is proper human oversight and involvement when AI is used in the workplace, especially when it aids in employers’ decision making in the workforce.
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