On September 30, 2026, Governor Newsom signed four bills regulating California employers’ use of artificial intelligence (AI), automated decision-making systems (ADS), and workplace surveillance. The laws require employers to understand what their workplace technology collects and how it affects employment decisions
Human Review for Automated Discipline and Termination
SB 947 (No Robo Bosses Act): Beginning July 1, 2027, employers may not rely solely on an ADS for certain disciplinary or termination decisions. Decisions based primarily on such systems require meaningful human review, written notice and data transparency.
New Cal-WARN Disclosure for Technology-Driven Layoffs
SB 951: When AI or specified technology substantially contributes to a workforce reduction covered by Cal-WARN, the notice must disclose the technological displacement. Coverage thresholds for Cal-WARN and its 60-day notice period remain unchanged.
California Restricts Certain Workplace Surveillance
Effective January 1, 2027, AB 1331 represents a significant expansion of worker privacy protections. The new bill restricts specified surveillance in bathrooms and other protected areas, while AB 1883 addresses certain AI tools that collect neural data, infer an employee’s emotional state, gait or protected personal information (e.g., veteran status, religious beliefs, disability status). The new bill also limits the use of facial recognition.
What Does It Mean?
Preparing for these changes starts with understanding how technology is used across the workplace. As applicable, employers should begin reviewing applicant-screening, GPS, scheduling, timekeeping, monitoring, wearable, and workforce-management systems for hidden data collection or automated decision-making features. Specifically, before the designated effective dates, employers should:
- Inventory systems used for hiring, scheduling, monitoring, performance, discipline, termination, and workforce planning.
- Identify automated decisions and require independent human review where needed.
- Review vendor tools for data collection and restricted surveillance functions.
- Update Cal-WARN procedures for technology-driven workforce reductions.
Vendor tool reviews should cover not only formally purchased or contracted systems (e.g., AI résumé-screening platforms or AI-powered workforce-scheduling systems), but also free or readily available AI services employees may use without formal procurement or IT approval (e.g., ChatGPT, Gemini, and MS Copilot). Employers should be sure to include these types of AI tools in their review and address them in any related policies.
Reviewing systems and vendor relationships now will help your organization meet its 2027 compliance obligations.