On August 30, 2026, AB 1883 was passed by the California legislature and sent to Governor Gavin Newsom. AB 1883, if signed into law, would amend the California Labor Code to include a new section that prevents employers from using AI-powered workplace surveillance tools.
The bill defines “employers” very broadly, including both public entities like governmental bodies and public schools like the University of California, and private institutions as long as the employer is exercising control over wages, hours, or working conditions of any person. “Workplace surveillance tool” includes any systems, applications, and devices that collect data through any means other than direct observation by another person. This bill does not apply to any workplace surveillance tools that do not use AI.
If passed into law, employers would not be allowed to use AI surveillance tools to recognize, infer, or predict employees’ emotional state or to collect neural data. Neural data, as defined in the bill, is any information gathered by measuring activity of an employee’s central or peripheral nervous system. This includes information like brain activity, eye activity, heart rate, breathing, and other physiological measures that cannot be inferred through human observation. A limited exception exists for the development of national security/defense technology and the development of aircraft; however, the exception only applies to operations covered by federal statute, federal regulation, or binding federal contract where the use of an AI tool would be reasonably necessary to comply with said federal statute, federal regulation, or binding federal contract.
Employers who violate this law can face a civil penalty of up to $500 per violation, enforced by the Labor Commissioner or a public prosecutor.
Key Takeaways
Even though AB 1883 is still awaiting approval from Governor Newsom, California employers should begin to look at their workplace technology. To get a head start on compliance, California employers should:
- Review any software, cameras, biometric systems, or other technology that monitors or analyzes workers to understand what data is being collected and how the data is being used.
- Ask vendors whether AI is used to analyze emotional or neurological information from employees and if AI is using said data to make inferences about employees.
- Develop a new process to evaluate AI tools and understand how AI tools are being used before they are implemented within the company.
Because of California lawmakers’ increased regulation of AI, and particularly their usage in the workplace, companies should be mindful of how they are using AI and what data the AI is collecting or analyzing to avoid any unnecessary risks.
For questions or guidance on how AB 1883 may impact your organization, please do not hesitate to reach out to your GRSM attorney or a member of GRSM’s Employment team for assistance.