California Enacts Workplace AI and Surveillance Regulations

California Governor Gavin Newsom has signed AB 2773 into law, establishing new regulations for workplace artificial intelligence and surveillance. The bill targets automated decision tools and the collection of employee data. It mandates that employers disclose their use of electronic monitoring and automated decision tools to employees. These disclosures must occur prior to monitoring, upon hire, and annually thereafter.

The legislation also requires employers to provide a copy of any policy governing electronic monitoring or automated decision tools. Employees must receive this document in an accessible format. The law defines electronic monitoring broadly, encompassing surveillance of computer, telephone, and location data. It includes email, internet, and application usage. This expands previous regulations, capturing a wider range of digital oversight practices.

Automated decision tools are defined as computational processes using algorithms, including artificial intelligence, to support or replace human decision-making. These tools include those used for hiring, performance evaluation, or termination. AB 2773 specifies the types of data covered, such as work speed, productivity, and health data. Employers must conduct impact assessments for these tools, detailing potential biases or discriminatory effects.

While the bill increases transparency and imposes new assessment requirements, it does not ban specific technologies. It aims to inform employees about data collection and automated processes affecting their employment. Enforcement details and specific compliance mechanisms will likely evolve through regulatory guidance. The law represents a significant step in state-level AI governance within employment contexts.

Will these new regulations foster greater employee trust or introduce unforeseen compliance burdens?