California Legal Update – October 2026
Governor Gavin Newsom was very busy on September 30th signing several employment- and workplace-related bills into law. Many are effective January 1, 2027, with one holding out until July 2027. We’re sending this update now so you are aware of, and can plan for, the upcoming changes. This update definitely confirms how much Artificial Intelligence (AI) is impacting the workplace given that three of the new laws deal with AI-related regulations.
Please note this is a summary of upcoming changes and not an all-inclusive overview.
AI Layoff Notices (SB 951)
Effective January 1, 2027, if Artificial Intelligence (AI) causes “in whole or in substantial part” a mass layoff, relocation or termination, California employers will be required to provide four new disclosures outlining information such as the number of positions, type of positions, job functions being automated, and the specific technology involved. These are in addition to existing California WARN requirements.
The Employment Development Department is required to provide a summary of these notices on it’s website.
Bathroom Surveillance (AB 1331)
Effective January 1, 2027, California prohibits surveillance or monitoring of employees in workplace bathrooms. “Workforce surveillance tools” includes video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, and photo-optical systems. This all may sound pretty logical, but the law is detailed. If you use access-control badges, certain scanners, beacons or other items mentioned in this Fisher Phillips article, read more to determine what you need to do to comply or contact HRT.
Monitoring Employee Emotions & AI (AB 1883)
Effective January 1, 2027, California employers will be prohibited from using AI-powered workplace surveillance tools on employees to:
- Recognize, or make inferences or predictions about, an individual’s emotional state; or
- Collect neural data.
If you use these types of tools, this Fisher Phillips article provides more information about steps you need to take to comply. Contact HRT for assistance.
No Robo Bosses Act (SB 947)
Effective July 1, 2027, employers will have to follow new requirements if they use an automated decision system (ADS) for disciplinary and termination decisions. Directly from the bill language, an ADS means “any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output, including a score, classification, or recommendation, that is used to assist or replace human discretionary decision making and materially impacts natural persons.”
In general, the following is required:
- First, an employer is not permitted to rely solely on an ADS when making a disciplinary or termination decision.
- Second, if an employer primarily relies on an ADS when making those decisions, an actual human being must corroborate the decision by reviewing the data. If the human does not corroborate the ADS “output”, the information can NOT be used to make the disciplinary or termination decision.
- And lastly, if the employer ends up relying on the ADS for the decision, a written notice (using plain language and sent through a simple method) must be provided to the affected employee about the decision – including details on the entire process stated above.
If you rely on an ADS, please review the full bill text to ensure you are aware of the details of the requirements; or better yet, reach out to HRT to discuss.
HRT Northwest: Your Northwest HR Team
(253) 642-7372 | info@hrtnorthwest.com
This Update is not a full overview of all recent or upcoming legal changes. HRT Northwest is staffed by professionals in the field of Human Resources and business management. We are glad to help with your HR needs; however, we do not offer legal advice and our services are not a substitute for the help of a qualified attorney.