California AI Workplace Bills Await Governor Newsom’s Action

California continues to consider new restrictions on the use of AI and other technology in the workplace. At the time of writing this post, several bills with direct implications for employers remain awaiting Governor Gavin Newsom’s action. The Governor has until midnight on September 30, 2026, to sign or veto these measures.

What We’re Watching

SB 947 – Automated Employment Decisions. Senate Bill 947 would restrict employers from relying solely on an automated decision system when making disciplinary or termination decisions. If an employer primarily relies on an automated system, a human reviewer would be required to independently corroborate the decision. Employees would also receive certain notice and information rights when an automated system is primarily relied upon. If signed, these provisions would take effect on July 1, 2027.

SB 951 – AI-Related Layoffs and Cal-WARN Notices. Senate Bill 951 would add new disclosure requirements when a Cal-WARN-covered mass layoff, relocation, or termination is caused in whole or substantial part by AI or another automated technology. Required notices would need to identify information such as the affected occupations, job functions being automated, and the type of technology involved. If signed, these requirements would generally take effect January 1, 2027. The bill also requires the Employment Development Department to submit a report on AI’s effects on business hiring practices by January 1, 2028.

AB 1883 and AB 1331 – AI Workplace Surveillance. Assembly Bill 1883 would generally prohibit employers from using AI-enabled workplace surveillance tools to recognize or infer an employee’s emotional state or collect neural data, subject to limited exceptions. If signed, the law would generally take effect January 1, 2027.

Assembly Bill 1331 would restrict employers from using workplace surveillance tools to monitor employees in workplace bathrooms. Covered surveillance tools include video and audio surveillance, continuous time-tracking tools, geolocation, and other technologies used to collect employee data or activity. The bill would also generally give employees the right to leave surveillance-enabled devices behind when entering a workplace bathroom, subject to limited exceptions, including certain identification and safety-related devices. If signed, the law would generally take effect January 1, 2027.

Next Steps for Employers

While these bills are still pending, California employers should:

• Monitor Their Status. No changes are required based solely on these pending bills, but employers should be prepared to evaluate new obligations if they are signed.
• Inventory AI and Automated Tools. Identify technology currently used for discipline, performance management, workforce decisions, monitoring, or employee surveillance.
• Review Human Oversight. Consider whether employment decisions influenced by automated tools currently include meaningful human review and documentation.
• Evaluate Workforce Planning Procedures. Employers subject to Cal-WARN should understand whether AI or automation may play a role in planned workforce reductions and be prepared to adjust notice procedures if necessary.

HR Works is closely monitoring these measures and will provide additional information regarding employer obligations, effective dates, and recommended compliance steps if the bills become law.