On Sept. 30, California Governor Gavin Newsom approved three measures addressing artificial intelligence in employment. In this day and age of rapid changes in AI, what does this mean for California employers? 

For California workplaces, the new laws change the ground rules: one law governs the role automated tools may play in disciplinary and termination decisions, another adds AI-specific content to mass layoff notices, and the third limits AI-enabled employee monitoring. In this update, we explain what each law requires or forbids, how the law will be enforced, and the steps we recommend employers take.

SB 947: Automated Tools in Discipline and Termination

Beginning July 1, 2027, employers may not base disciplinary decisions, including terminations, solely on AI or algorithmic system output. Affected employees must be told which AI tools were involved and receive summaries of the personal data considered. The law revives the No Robo Bosses Act, which Newsom vetoed in 2025.

Key takeaway: Before mid-2027, ensure a human controls every disciplinary and termination outcome and that the AI tools and personal data involved can be documented. 

SB 951: Technology-Driven Layoffs Under the California WARN Act

Under California's WARN Act, employers are required to provide at least 60 days' notice to employees and the state before laying off 50 or more employees. Under this new law, when a layoff results from adopting AI or automation, the notice must also state the number, location, and types of jobs displaced and the automation technology involved. Moving forward, the state's Employment Development Department (EDD) will also post notice summaries online and issue quarterly reports on statewide technology displacement. This statute goes into effect Jan. 1, 2027. 

Key takeaway: Automation-driven layoffs require added job and technology detail, which the state will summarize publicly. 

AB 1883: Limits on AI-Enabled Employee Monitoring

Effective Jan. 1, 2027, employers are not allowed to use AI-enabled audio, video, continuous time-tracking, location, or electromagnetic tracking tools to gather neural data (brain activity) or infer employees' emotional states. Violations can carry civil penalties of up to $500 each, enforced by the Labor Commissioner and public prosecutors. Newsom, in a signing statement, urged the legislature to refine the law's reach, together with AB 1331 on restroom surveillance, so its scope may change.

Key takeaway: Check whether any monitoring product applies AI to brain-activity data or emotion detection, and track follow-up legislation.