HR & AI

California workplace AI rules: separate the obligations.

Current discrimination and privacy rules, plus new 2027 safeguards for AI-assisted discipline, workplace surveillance, and technology displacement.

Last reviewed: . Current requirements and future start dates are identified separately below.

Current employment and privacy rules

California’s employment regulations addressing automated decision systems took effect October 1, 2025. They clarify how existing employment discrimination protections apply when technology supports employment decisions. Using a vendor does not remove the employer’s responsibility for its decisions.

The California Privacy Protection Agency has a separate regulatory framework. Its regulations took effect January 1, 2026, with different compliance dates for different obligations. Risk-assessment requirements begin in 2026; ADMT requirements begin January 1, 2027 for covered businesses and uses. The rules’ effective date is not the same as every compliance deadline.

Confirm coverage before building a checklist

The CCPA generally applies to for-profit businesses that meet its criteria. It generally does not apply to nonprofits or government agencies, although related entities, contracts, and other legal obligations can require separate analysis. Being an employer or using AI does not, by itself, settle coverage.

July 1, 2027: human oversight of discipline and termination

SB 947 prohibits employers subject to the law from relying solely on an automated decision system (ADS) to discipline or terminate an employee. If the employer primarily relies on an ADS output, a human must corroborate the decision using the underlying data or relevant supporting information. If the output cannot be corroborated, or the reviewer finds it inaccurate, incomplete, or misleading, it cannot be used for that decision.

When an employer primarily relies on an ADS, it must provide a separate written postuse notice when informing the employee of the decision. The employee may request a meaningful, objective description of their own data used. Assess the law’s specified exceptions and keep privacy obligations separate from the employment-review process.

January 1, 2027: limits on workplace surveillance

AB 1331 generally prohibits employer surveillance of employees in workplace bathrooms unless permitted by court order, with specified rules and exceptions for leaving surveillance tools behind. AB 1883 generally prohibits AI-enabled workplace surveillance tools from recognizing, inferring, or predicting an employee’s emotional state or collecting neural data measured from the nervous system, subject to limited exceptions.

Review functionality embedded in cameras, audio tools, wearables, timekeeping, and productivity platforms. A vendor’s label does not establish which rules apply.

January 1, 2027: technology-displacement notice

SB 951 adds disclosures when a required California WARN notice concerns a covered mass layoff, relocation, or termination caused wholly or substantially by AI or automation replacing positions. Required details include affected jobs and locations, automated functions, and the technology category. Existing WARN coverage and notice triggers still govern.

Review California WARN guidance →

Map the workflow

  • What does the tool do: draft, score, rank, recommend, monitor, or decide?
  • Whose information goes into it, and where do those people work or apply?
  • Can an accountable person question the output and change the outcome?
  • What records, notices, accessible alternatives, and vendor information are needed?

Ask more of the vendor

Request an explanation of the intended use, known limitations, testing, data handling, and change process. A vendor’s broad statement that its product is “compliant” is not a substitute for reviewing your use of it.

A useful next step

Complete an inventory for one hiring, performance, or monitoring workflow. Assign the reviewer, corroboration records, notices, vendor questions, and relevant 2027 deadline. Bring it to HR, the responsible manager, IT or privacy support, and qualified counsel before expanding the tool.

Open the AI tool inventory →

Educational guidance, not legal advice or a certification of compliance. Requirements depend on location, employer size, industry, and the facts. Consult qualified employment counsel for decisions involving legal obligations.

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