The package also expands workplace-surveillance restrictions as California continues building out its broader AI regulatory framework. #
California Gov. Gavin Newsom signed a new package of artificial intelligence laws that places limits on how employers can use automated systems to discipline or fire workers and requires additional disclosure when AI contributes to large-scale job cuts.
The measures are part of a broader package of workplace, health care and AI-transparency legislation. The California Governor's Office announcement said the new laws are intended to put human oversight around automated employment decisions and restrict some forms of workplace surveillance.
One of the most significant measures, Senate Bill 947, prevents employers from relying solely on an automated decision system when making a disciplinary or termination decision.
Under SB 947, employers that primarily rely on an automated system must have a human review and corroborate the system's output using supporting information before disciplining or firing a worker. If the AI-generated output cannot be corroborated, or the human reviewer determines it is inaccurate, incomplete or misleading, the employer cannot use it to make the decision.
The law also gives affected workers the right to request a description of their own data that was primarily used by the automated system. Employers must provide written notice when an automated decision system played a primary role in a disciplinary or termination decision and tell the employee that a human reviewed the result.
Those provisions are scheduled to become operative July 1, 2027.
California is also adding AI-related disclosure requirements to its existing rules governing mass layoffs.
Under SB 951, employers covered by the California Worker Adjustment and Retraining Act must provide additional information when a mass layoff, relocation or termination is caused wholly or substantially by an AI system or other automated technology replacing or automating jobs.
The notice must identify the job functions being automated by AI or other technology.
California's existing WARN law generally requires covered employers to give 60 days' notice before a mass layoff, relocation or termination at qualifying workplaces. SB 951 adds the technology-related disclosure requirement rather than replacing the existing notice rules.
The legislation also directs the California Employment Development Department to publish summaries of notices involving technological displacement and produce quarterly statewide summaries.
By Jan. 1, 2028, the department must also submit a report to lawmakers examining AI's effect on hiring practices, including its impact on industries and occupations across different parts of California.
Newsom signed two additional measures dealing with workplace surveillance, AB 1331 and AB 1883.
The Governor's Office said the package restricts surveillance technology in workplaces, including a ban on employers using workplace surveillance tools inside workplace bathrooms. The laws form part of a four-bill worker package that also includes SB 947 and SB 951.
The administration said the measures are designed to address the growing use of AI, automated decision-making and monitoring systems at work.
"AI should expand opportunity — not come at the expense of workers and families," Newsom said in the official announcement.
The California Federation of Labor Unions said the four measures establish new safeguards around human oversight, workplace surveillance and automated employment decisions.
The worker protections follow several other AI measures signed by Newsom during September.
Earlier in the month, California enacted SB 813 and AB 1405, which establish a framework for independent organizations to assess AI systems for compliance with state law and create a state registry for AI auditors.
The Governor's Office said Sept. 9 that the measures establish standards for third-party audits and independent assessments of AI systems.
Newsom followed those laws with a Sept. 18 executive order directing state agencies to accelerate their implementation and convene experts to consider additional safeguards for advanced AI systems.
California also strengthened protections around AI companion chatbots and children in September, including requirements for child-safety audits and risk assessments before certain systems are released.
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