California’s New AI Workplace Laws: A Compliance Checklist for Multi-State Employers
On September 30, 2026, California Governor Gavin Newsom signed a package of bills regulating the use of artificial intelligence and automated decision systems in the workplace. These measures are distinct from the separate executive order on terminology. They create concrete compliance obligations for employers operating in California.
Multi-state employers should treat these requirements as a baseline for California operations and evaluate whether similar controls should be applied more broadly for consistency.
Key Laws at a Glance
SB 947 – No Robo Bosses Act
Focus: Discipline and termination decisions.
Effective: July 1, 2027.
Core requirement: Employers may not rely solely on an automated decision system for discipline or termination. When an automated system is primarily used, a human reviewer must independently corroborate the output using additional information (such as managerial evaluations, peer reviews, or personnel files), and the affected employee must receive a specific written notice.
SB 951 – AI-Related Layoffs / Cal-WARN Updates
Focus: Mass layoffs, relocations, or terminations caused in whole or substantial part by AI or automation.
Effective: 2027.
Core requirement: Additional disclosures in California WARN notices, including a clear technology-displacement statement, the number and type of affected positions, the job functions being automated, and the category of technology involved.
AB 1883 – Emotion Prediction and Neural Data Ban
Focus: Workplace surveillance tools.
Effective: 2027.
Core requirement: Employers are prohibited from using AI-powered tools that recognize, infer, or predict an employee’s emotional state or that collect neural data (activity of the nervous system).
AB 1331 – Bathroom Surveillance Ban
Focus: Workplace monitoring in private spaces.
Effective: 2027.
Core requirement: Employers may not use workplace surveillance tools in restrooms or similar private areas.
AB 1979 – Healthcare AI Limits
Focus: Clinical decision-making and health chatbots.
Effective: 2027.
Core requirement: Artificial intelligence may not replace the clinical judgment of licensed healthcare professionals and must remain advisory. Medical confidentiality obligations are extended to health chatbots and similar tools.
(Other 2026 California measures address independent AI auditors, gene synthesis, education procurement, companion chatbots, and related topics. This checklist focuses on the primary employment and healthcare obligations most relevant to multi-state employers.)
Compliance Checklist for Multi-State Employers
1. Inventory Automated Decision Systems Used for Employment Decisions
- Identify all tools that produce scores, classifications, or recommendations used in discipline, termination, performance management, or promotion decisions for California employees.
- Determine whether any tool is used as the sole or primary basis for such decisions.
- Document data sources fed into each system.
2. Implement Human Review for Discipline and Termination (SB 947)
- Prohibit sole reliance on any automated decision system for discipline or termination of California employees.
- Require a human reviewer to independently corroborate the system’s output using additional information (e.g., managerial evaluations, peer reviews, personnel files, work product).
- Ensure the human reviewer has authority to override or reject the system’s recommendation.
- Prepare a plain-language written notice template for cases in which an automated system is primarily relied upon. The notice must include:
- Statement that an automated system was primarily used
- Confirmation of human review and corroboration
- Description of employee data used (or right to request it)
- Contact information for a human who can explain the decision
- Statement that retaliation is prohibited
3. Update Layoff / WARN Processes (SB 951)
- Revise California WARN / mass-layoff notice templates to include required disclosures when job losses are caused in whole or substantial part by AI or automation.
- Required elements typically include a clear “technology displacement” statement, number and type of affected positions, job functions being automated, and category of technology involved.
- Coordinate with legal and HR to identify when AI/automation is a substantial contributing factor.
4. Audit Workplace Monitoring and Surveillance Tools (AB 1883 & AB 1331)
- Inventory all workplace surveillance, productivity, sentiment, or analytics tools used with California employees.
- Disable or remove any features that recognize, infer, or predict emotional states.
- Disable or remove any features that collect neural data (activity of the nervous system).
- Confirm no surveillance tools operate in restrooms or similar private spaces.
- Update vendor contracts and data-processing agreements accordingly.
5. Healthcare-Specific Controls (AB 1979)
- For any California healthcare operations or clinical decision-support tools: ensure AI outputs remain advisory and do not replace the clinical judgment of licensed professionals.
- Confirm medical confidentiality obligations extend to health chatbots or similar tools.
- Document human oversight of AI-assisted clinical recommendations.
6. Cross-Functional Readiness
- Brief HR, Legal, Compliance, People Analytics, and IT/Security teams on the new requirements and effective dates.
- Update internal AI use policies, vendor due-diligence questionnaires, and employee handbooks for California operations.
- Establish a process for employees to request descriptions of data used by automated systems.
- Monitor for implementing regulations or guidance from the California Labor Commissioner and other agencies.
7. Multi-State Consistency Decision
- Decide whether to apply California-level human-review and notice requirements in other states for operational consistency.
- Document the risk-based rationale for any differences in treatment across jurisdictions.
Frequently Asked Questions
Do these laws apply only to California employees?
Yes. The employment-related requirements apply to employees working in California. Multi-state employers must apply the rules to their California workforce and related systems.
When do the main employment rules take effect?
SB 947 (No Robo Bosses Act) takes effect July 1, 2027. Other measures generally take effect in 2027; confirm exact dates in the enrolled bills and any implementing guidance.
What counts as an “automated decision system”?
The definition is broad: any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output (score, classification, recommendation) used to assist or replace human discretionary decision-making and that materially impacts individuals.
Can we still use AI tools for performance management or scheduling?
Yes, provided they are not the sole or primary basis for discipline or termination decisions and do not violate the emotion-prediction, neural-data, or restroom-surveillance prohibitions.
What happens if we primarily rely on an AI system for a termination?
A human must independently corroborate the output with additional information, and the employee must receive a specific written notice at the time the decision is communicated.
How does this relate to the separate California executive order on terminology?
The terminology order requires state agencies to continue using “Artificial Intelligence” and “AI.” It does not change the substantive requirements of these employment and healthcare bills.
Where can multi-state employers track additional state AI laws?
The AI Table maintains a 50-State AI Policy Tracker that monitors developments across jurisdictions.
Resources from The AI Table
The AI Table provides research, policy briefs, and membership programs focused on responsible AI adoption, governance, and AI strategy. These resources help multi-state employers translate California’s new requirements into practical compliance and risk-management frameworks.
Related reading: Algorithmic Firing: When AI Manages People Out
