California Cracks Down on AI at Work: What Other States Are Doing

California Governor Gavin Newsom has enacted three new workplace laws aimed at regulating the increasing use of artificial intelligence (AI) and automated technology in the workplace. These measures, SB 947, AB 1883, and SB 951, expand protections for California employees as businesses integrate AI into their management practices.

The laws place limits on automated firing, restrict certain AI-powered surveillance methods, and require employers to disclose when automation is responsible for large-scale job losses. This legislation brings California in line with other jurisdictions like Colorado, Illinois, Maine, and New York City, which have also introduced protections for automated employment decisions or electronic monitoring.

However, each state has adopted a distinct approach to these issues. SB 947, introduced by state Senator Jerry McNerney and set to take effect on July 1, 2027, primarily targets the use of Automated Decision Systems (ADS) in disciplinary or termination decisions. Employers must involve a human in the decision-making process when an ADS primarily makes these types of decisions, ensuring that human oversight can verify the legitimacy of the AI's recommendations.

This requirement includes providing written notice to employees when an ADS was predominantly used in the decision-making process, along with the opportunity to request a description of the data the system used. AB 1883, authored by Assemblymember Isaac Bryan, focuses on the use of sophisticated AI systems for employee monitoring.

It restricts employers from using AI-powered surveillance tools to analyze employees' emotional states or predict their feelings, as well as from collecting data on workers' brain or nervous system activity. Violations of this law can result in enforcement actions and civil penalties of $500 per violation. SB 951, authored by state Senator Eloise Gómez Reyes, addresses the impact of AI on job displacement.

This law amends California's Worker Adjustment and Retraining Notification (WARN) requirements. Upon mass layoffs, relocations, or terminations—whether wholly or substantially due to AI or other automated technology—employers must provide additional information in their WARN notices. This information includes the number of layoffs attributable to automation, the affected occupations and locations, the job functions being automated, and the technology category used.

The change aims to enhance transparency regarding the role of technology in qualifying layoffs. While California's measures are comprehensive, they are not the only ones addressing AI in the workplace. Colorado has established one of the most extensive state frameworks for automated decision-making, requiring companies using AI or other automated technology in employment decisions to provide notices and allowing workers to request access to their personal data and human review when a negative decision is made.

Illinois has taken a more narrow approach, focusing on recruitment with its Artificial Intelligence Video Interview Act, which mandates disclosure of AI usage during video interviews, explanation of evaluation criteria, and consent from applicants. New York City has also introduced a rule governing automated hiring technology, known as Local Law 144, which requires audits for bias within the past year, public disclosure of audit details, and notification of affected candidates or employees.

California's legislation thus expands protections across various stages of the employment relationship, including monitoring while employed, automated decisions regarding discipline or dismissal, and disclosure when technology contributes to broader job cuts. While other jurisdictions have enacted portions of this framework, California's recent laws extend protections across multiple ways AI can affect workers.