By Elissa L. Gysi, Marcus Nelson and Nicholas Gigliotti
Governor Newsom recently signed several bills into law that will impose new requirements on employers. Unless specifically noted below, most of these new laws take effect January 1, 2027, and some will require immediate changes to company policies and practices.
Our Labor and Employment team will provide a comprehensive overview of these laws and other California employment law updates at the Firm’s 2026 Annual Employment Law Seminars on October 15, 2026 in Anaheim, and on October 29, 2026 at our office in Downtown Los Angeles.
Senate Bill (SB) 951 – Required Notice of Layoffs Caused By AI
California employers will be required to disclose when a mass layoff is caused by their use of artificial intelligence or automation technology. This law expands the Worker Adjustment and Retraining Notification (“WARN”) Act which requires employers to notify the affected workforce at least 60 days prior to a layoff of 50 or more employees.
Assembly Bill (AB) 1883 – Ban on AI-Powered Workplace Surveillance Tools
California will ban AI-powered workplace surveillance tools that (1) predict or infer an employee’s emotional states or (2) collect neural data. Violators are subject to a civil penalty of up to $500 per violation.
Senate Bill (SB) 947 – “No Robo Bosses Act”
Effective July 1, 2027, California employers are prohibited from relying solely on automated decision systems for discipline or employee terminations. The law requires employers to provide affected workers with notices about the AI tools used and summaries of personal data considered in making decisions. The penalty is $500 per violation.
Assembly Bill (AB) 2495 – Immigration-Related Workplace Protections
Effective January 1, 2027, AB 2495 expands California’s ban on unfair immigration-related practices. Employers may not use a person’s actual or perceived immigration status to discourage them from exercising rights under local, state, or federal employment laws, such as the right to file good-faith workplace complaints. Employers also may not use immigration status to pressure a person into doing something they have a legal right to refuse. The law protects applicants, current employees, and former employees. Each violation carries a civil penalty of up to $10,000 per affected person.
Assembly Bill (AB) 1803 – “Hate Speech” Training Requirement
California employers with five or more employees are already required to conduct anti-harassment training (1-hour for nonsupervisory employees and 2-hours for supervisory employees) every two years. AB 1803 requires that, beginning January 1, 2028, the mandatory biannual training also address prevention of hate speech in the workplace. The new law does not define “hate speech,” so employers will need to watch for further guidance from the California Civil Rights Department in the coming year.
Senate Bill (SB) 464 – Mandatory Pay Data Reporting Considerations
California’s Senate Bill 464 overhauls how private employers with 100 or more employees classify their workforce for the state’s annual pay data report. Beginning with the 2026 report due in May 2027, employers must place every employee into one of 23 new occupational categories based on the federal Standard Occupational Classification system, replacing the 10 EEO-1 categories used until now.
Call Hill Farrer for Further Questions
Please contact your Hill Farrer attorney or any member of our Labor and Employment department at (213) 620-0460 if you have questions regarding how these legislative bills affect your business. We are also available to review and revise Employee Handbooks and policies to ensure that they comply with and accurately summarize new California laws.
If you would like to attend one of our 2026 Annual Employment Law Breakfast Seminars on October 15, 2026, in Anaheim or October 29, 2026 at our office in Downtown Los Angeles, please click here to RSVP or email oac@hfbllp.com.
