No More “Robo Bosses”: California Enacts Sweeping Workplace AI Legislation

October 2, 2026

By: Jessica L. Copeland and Courtney Ryan

On Sept. 30, 2026, California Governor Gavin Newsom signed five significant AI-related bills that further strengthen the state’s AI regulatory framework. Collectively, these new laws demonstrate California’s increasing focus on the real-world impacts of AI in the workplace and signal that employee privacy, human oversight and transparency must be prioritized.

SB 947: Human Oversight Required in Disciplinary and Termination Decisions

Perhaps the most notable of the new laws, SB 947 prohibits employers from relying solely on automated decision systems (ADS) in making disciplinary or termination decisions. If an employer relies primarily on an ADS output, they must ensure that a human reviews and corroborates such a decision. Employees are entitled to receive notice when ADS played a primary role in a disciplinary or termination decision, and they have the right to request information regarding the data used by the system. SB 947 makes it clear that decisions affecting a person’s job cannot be delegated entirely to AI.

In addition, the law prevents employers from using ADS to infer an employee’s protected status or to predict and take adverse action against an employee for exercising their legal rights.

SB 951: Layoff Disclosures

SB 951 is designed to increase transparency when AI contributes to mass workforce reductions. The law requires employers to provide 60-day written notice when mass layoff, relocation or termination is caused in whole or substantial part by AI systems or other automated technologies. Additional information regarding the job functions being automated, the type of technology involved and the number, classification or occupation, and work location of layoffs must be included in the required disclosure(s).

AB 1331: Limits on Workplace Surveillance

AB 1331 addresses employee privacy concerns by restricting workplace surveillance. The law prohibits employers from monitoring or surveilling employees in workplace bathrooms, and grants employees the right to leave behind workplace surveillance tools that are on their person or in their possession when entering a bathroom.

AB 1883: Restrictions on AI-Powered Brain and Emotion Monitoring

AB 1883 places significant limits on AI-powered workplace surveillance tools, which includes video or audio surveillance, continuous incremental time-tracking technologies, geolocation, electromagnetic tracking and photoelectronic tracking. The law generally prohibits employers from using workplace surveillance tools that utilize AI to collect neural data or to recognize, infer or make predictions about an employee’s emotional state.

SB 574

Although not focused on employers broadly, California became the first state in the nation to enact legislation specifically targeting attorneys’ use of generative AI. SB 574 prohibits attorneys from delegating the practice of law to generative AI and places restrictions on using AI as a tool to assist in the practice of law. Attorneys may not enter confidential, personal identifying or nonpublic information into a generative AI system unless it is restricted to the attorney and individuals authorized by the attorney who are under obligations to protect the confidentiality of the information. Additionally, when AI is used to assist, attorneys must take reasonable steps to verify the accuracy of AI-generated content (including citations) and correct any erroneous or hallucinated output(s). The law also requires attorneys to disclose the use of generative AI to the court for all documents submitted.

In addition to attorneys, SB 574 similarly prohibits arbitrators from delegating decision-making to generative AI and requires disclosure to the affected parties if an arbitrator relies on AI-generated information.

Recommendations

California continues to lead the nation in regulating artificial intelligence. Employers operating in California that use AI-enabled employment, monitoring or workforce-management tools should begin evaluating their compliance obligations to avoid potential violations.

  • Review all AI-powered tools used in employment decisions to determine what roles and functions the AI serves.
  • Confirm that all disciplinary and termination decisions include meaningful human review.
  • Evaluate workplace monitoring and surveillance technologies to identify compliance risks.
  • Update all AI, human resources, and privacy policies to address the requirements of these new laws.


Bond provides a full range of legal services for businesses across all sectors. Our team is available to assist with compliance reviews, risk assessments and development of internal policies tailored to these new laws. If you have any questions about this update, please contact Jessica L. Copeland, Courtney Ryan or any Bond attorney with whom you work regularly.