New California AI Employment Laws: Key Requirements for Employers

Inside Privacy reports that SB 947 restricts employers' use of automated decision systems (ADS), including by prohibiting certain inferences about protected status[1]. The blog says the law also requires human corroboration for ADS-based disciplinary or termination decisions[1] and requires notice after the fact when an employer relies mainly on such systems.According to Inside Privacy, violations carry a civil penalty of $500 and may be enforced through a civil action or by the Labor Commissioner.[1] Ogletree Deakins says the law's human reviewer mandate[3] takes effect on July 1, 2027.Inside Privacy reports that SB 951 changes Cal/WARN to require more notice when layoffs are caused in whole or substantial part by AI or other automated technology.[1] The blog adds that the Employment Development Department must publish summaries of these notices.[1]Inside Privacy says SB 951 violations carry a civil penalty of up to $500 for each day of violation[1], plus back pay and benefits. It reports that the law becomes operative on January 1, 2027.[1]According to Inside Privacy, AB 1883 restricts how employers may use workplace surveillance tools, including systems that collect employee data, activities, communications, biometrics, or behaviors.[1]The National Law Review says SB 951 signals California's intent to track and publicize the displacement of workers by AI[4]. It adds that the key question is whether AI is a substantial factor, not the sole factor.[4]