New California AI Employment Laws: Key Requirements for Employers

On September 30, California Governor Gavin Newsom signed three laws that will regulate the use of AI in the employment context, starting in the new year. Below, we briefly summarize these developments, which we discuss in greater detail in our prior blog post. These laws join an existing body of California AI employment regulations.

SB 947 (The “No Robo Bosses Act”)

SB 947 restricts employers’ use of automated decision systems (ADS), including by prohibiting certain inferences about protected status and adverse actions based on predictions that a worker will exercise legal rights. It also requires human corroboration for ADS-based disciplinary or termination decisions, mandates post-use notice when an employer primarily relies on ADS for such a decision, and includes protections against retaliation. Violations carry a civil penalty of $500 and may be enforced through a civil action or by the Labor Commissioner. SB 947 becomes operative on July 1, 2027.

SB 951 (Amendments to Cal/WARN)

SB 951 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 must publish summaries of these notices. Violations carry a civil penalty of up to $500 for each day of violation, and the employer will be liable for back pay and the value of benefits for the notice period (which will be reduced by other wages, voluntary and unconditional payments, and benefits provided to an employee during the period of violation). SB 951 becomes operative on January 1, 2027.

AB 1883 (Workplace Surveillance Tools)

AB 1883 restricts how employers may use workplace surveillance tools, including systems that collect employee data, activities, communications, biometrics, or behaviors. It prohibits using these tools to infer or predict emotional states or collect neural data, subject to limited safety and federal-law exceptions. Violations carry a civil penalty of up to $500 and may be enforced through a civil action or by the Labor Commissioner. AB 1883 becomes operative on January 1, 2027.