The package of legislation, signed on Thursday, makes California one of the first states to roll out comprehensive workplace regulations targeting AI. The new laws prohibit bosses from making firing decisions based entirely on AI systems, require companies to notify workers if layoffs were caused by AI, and bar the use of AI surveillance in workplace bathrooms.
Another provision bans employers from using AI to predict employees' emotional states, while a separate measure prohibits the collection of neural data -- information derived from electrical signals in someone's brain or nerves -- without explicit consent.
California, home to many of the world's leading AI companies, is taking the lead as the federal government maintains a largely hands-off approach to AI regulation. The laws directly address what surveys have shown to be workers' biggest fear: that AI will replace their jobs or be used to make unfair decisions about their employment.
Employer groups have raised concerns about the complexity of compliance and potential unintended consequences, though no official statements were included in the announcement. Worker advocates have praised the measures as a necessary step to ensure AI is deployed responsibly in the workplace.
The legislation takes effect next year, with enforcement responsibilities falling to the California Labor Commissioner's office.