Governor Newsom has signed Assembly Bill 1883, introducing sweeping new restrictions on how employers may use artificial intelligence-powered surveillance tools.
The legislation, known as AB 1883, directly targets the growing use of AI-driven monitoring technologies that have become increasingly common across California workplaces in recent years.
Under the new law, employers are prohibited from deploying AI-powered surveillance tools capable of recognising or making inferences or predictions about an individual’s emotional state.
Technologies designed to collect neural data from workers are also explicitly banned, marking one of the most significant restrictions on workplace monitoring seen in any US state.
This means emotion recognition software and neural monitoring devices that claim to measure whether a worker is concentrating, tired, or stressed are now off-limits in California workplaces.
Two notable exceptions exist within the bill, permitting the use of these technologies depending on the industry, provided that industry is subject to federal laws or contracts.
AB 1883 does not apply to employers responsible for the development of aircraft used in the national airspace, nor to employers developing products or services for national security, military, space, or defence purposes.
These industry exceptions apply only to the extent that workplace surveillance is “reasonably necessary” to comply with applicable federal requirements, ensuring the carve-outs remain tightly defined.
Enforcement of the law falls to California’s Labor Commissioner and public prosecutors, defined under California Labor Code Section 180 as the Attorney General, district attorneys, city and county counsel, and city or county prosecutors.
Legal actions may be brought in the superior court of any county where an alleged violation occurred or where the employer transacts business, giving enforcement broad geographic reach across the state.
Successful petitioners under the law may be entitled to injunctive relief and awarded punitive damages, along with reasonable attorney’s fees and costs recovered from violating employers.
Employers found in violation of AB 1883 face additional financial penalties of $500 for each individual violation recorded against them.
The law becomes operative on January 1, 2027, giving California businesses a defined window to audit their existing surveillance practices and ensure full compliance before the deadline.
California’s move is part of a broader national trend, with states including Maine and Connecticut having recently enacted or updated their own electronic monitoring laws targeting employer surveillance.
Existing electronic monitoring legislation already operates in states such as Delaware, New Jersey, and New York, suggesting that workplace surveillance regulation is becoming a significant area of employment law across the United States.