
Seyfarth Synopsis: With Governor Newsom’s September 30 bill-signing deadline behind us, we review California’s new employment laws for 2027. The most spine-tingling among them are regulations of employers’ use of automated decision systems, changes to last year’s “stay or pay” law, and amendments impacting temporary restraining orders, bereavement leave, and workplace surveillance. But there are no ghosts or ghouls lurking here, only the information employers need to comply with these new requirements in time for their respective effective dates.
As Halloween decorations crept up around the state this September 30, Governor Newsom finished determining which bills will live on as laws effective January 1, 2027, and which were sent to an early grave. We saw far fewer employment bills in 2026 than in prior years, and thankfully, no wage and hour or PAGA bills lurking in the shadows to give employers a fright. The surviving new laws for which employers need to prepare include regulation of employers’ use of automated decision systems, temporary restraining orders, bereavement leave, and workplace surveillance. The Governor also dropped a little extra bit of candy into employers’ bags by approving new exceptions and a one-year compliance reprieve on 2025’s “stay or pay” law.
If you’re the type who counts trick or treaters coming to your door, you might appreciate these statistical treats courtesy of lobbyist Chris Micheli: of the 1,160 bills the Legislature sent to the Governor’s Desk, he signed 1,040 and vetoed 120. This is the highest percentage of bills reaching the Governor’s desk (63%) since 2002, when 65% of introduced bills were sent to the Governor. Over his 8 years in office, Governor Newsom acted on 7,803 bills, signing 6,752 (86.5%) and vetoing 1,051 (13.5%). Micheli compared this to his predecessors: (1) Governor Brown acted on 8,000 bills with a 13.7% veto rate; (2) Governor Schwarzenegger acted on approximately 7,400 bills with a 26.5% veto rate; (3) Governor Davis acted on approximately 6,200 bills with a 17.6% veto rate; and (4) Governor Wilson acted on nearly 11,300 bills with a 16.8% veto rate.
Read on for all the tricks and treats coming to California employers in the new year. All bills take effect January 1, 2027, unless stated otherwise.
AI Legislation
SB 947 – “No Robo Bosses Act” Automated Decision Systems (ADS)
SB 947, beginning July 1, 2027, prohibits employers from relying solely on an ADS when making employment-related decisions, and requires a human reviewer to conduct an independent investigation and compile corroborating information for disciplinary and termination decisions. An “ADS” includes any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues simplified output, including scores, classifications, or recommendations, that is used to assist or replace human discretionary decision-making.
If the ADS output cannot be corroborated, or a human reviewer concludes it is inaccurate or misleading, the employer will be prohibited from relying on it. The bill also bars employers from using an ADS to:
- Infer a worker’s protected status under FEHA, and
- Predict and take adverse action against a worker for exercising their legal rights.
The new law requires employers to provide affected employees with post-use notice of an ADS, and a right to obtain a description of employee data primarily used by an ADS in a disciplinary or termination decision. The Labor Commissioner and public prosecutors have enforcement authority and employees may also bring private rights of action to recover in part civil penalties up to $500 per violation.
This bill adds Part 5.5.5 (commencing with Section 1520) to Division 2 of the Labor Code.
For a summary of prior AI-related California legislation, check out our prior blog posts here and here.
SB 951 – Cal/WARN: AI Technological Displacement Notice
SB 951 revises Cal/WARN to require a notice of a mass layoff, relocation, or termination caused in whole or in substantial part by an AI system (or other automated technology that replaces or automates employment positions). This notice must state at the top: “This notice is for a technology displacement,” and include: (1) the number, classification or occupation, and work location of layoffs substantially due to AI or other automated technology; (2) the job functions performed by those replaced workers that will be automated; and (3) the specific category or type of AI system or other automating technology resulting in the technological displacement. The Employment Development Department (EDD) must to publish on its website a summary of the notices received and post a quarterly state-wide summary of reported technological displacements.
Notably, Cal/WARN’s 60-day advance notice period or coverage thresholds remain unchanged.
This bill amends Sections 1400.5 and 1401 of, and adds and repeals Section 1402.7 of, the Labor Code.
SB 574 – Attorneys’ Use of Generative AI
SB 574 imposes several limitations on attorneys’ AI use, and require attorneys to disclose their use of generative AI in court filings. The attorney conduct prohibited by this new law includes:
- Entering confidential, personal identifying, and other nonpublic information into a generative AI system where access is not restricted to the attorney or authorized users with the obligation to keep the information confidential; and
- Including in any paper filed in any court citations that have not been personally verified.
The new law requires attorneys to take reasonable steps to verify the accuracy of generative AI outputs and to correct any erroneous or hallucinated output. The new law also prohibits an arbitrator from (1) delegating any part of their decision-making process to a generative AI tool; and (2) relying on information from generative AI outside the record without making appropriate disclosures to the parties beforehand.
This bill amends Section 6173 of, and adds Section 6068.1 to, the Business and Professions Code, and amends Section 128.7 of, and adds Sections 180 and 1282.1 to the Code of Civil Procedure.
Anti-Discrimination and Harassment
AB 2563 – Sex Discrimination Definition Harmonization
AB 2563 creates a consistent definition of “sex discrimination” across California’s statutory codes, to align the definition in FEHA, the Unruh Act, the Education Code, and more.
This bill amends various sections of each impacted statute.
AB 1961 – TRO: Protecting A Group of Employees
AB 1961 permits an employer to seek a TRO on behalf of a reasonably identifiable group of employees based on their workplace or location—without having to identify an individual employee—if a credible threat of violence is generally directed at the employer’s workplace or at a group of employees.
This bill amends Section 527.8 of the Code of Civil Procedure.
AB 1928 — Postsecondary Education Sex Discrimination and Harassment Complaints: Support Person for Grievance Hearings
AB 1928 authorizes students at postsecondary educational institutions that receive state financial assistance and state student financial aid to have a support person and advisor of their choice with them at any stage of the grievance process related to a sexual harassment complaint arising under state law and Title IX.
This bill amends Section 66281.8 of, and adds Section 66281.10 to, the Education Code.
Vetoed: AB 1940 – Adding Menopause to FEHA Definition of “Sex”
AB 1940 would have added perimenopause, menopause, post-menopause or other related medical conditions to FEHA’s definition of sex, making those conditions protected categories under the FEHA, and required the Civil Rights Department to update its poster notifying women of their rights relating to perimenopause, menopause, and post-menopause. The Governor vetoed the bill citing significant cost and implementation concerns due to lack of clarity with some undefined terms. He subtly chastised the Legislature for sending him a bill that “does not strike the important, achievable balance between expanding access to this important treatment and the affordability of care” for the second year in a row. He instead directed the Health and Human Services Agency to identify additional policy changes or investments to address perimenopause and menopause evaluation and treatments for next year’s budget process.
This bill would have amended Section 51 of the Civil Code and Sections 12926 and 12950 of the Government Code.
Leaves of Absence & Anti-Discrimination
SB 1149 – Bereavement Leave for a “Designated Person”
Continuing the Legislature’s “designated person” theme for the fourth year in a row, SB 1149 expands the persons for which an employee may take up to five days of unpaid (unless the employer’s policy provides for paid) bereavement leave to include the employee’s “designated person.” Employees can make this designation at the time they take leave and employers may limit an employee to one designated person per 12-month period.
This bill amends Section 12945.7 of the Government Code.
AB 1803 – Mandating Anti-Hate Speech Training
AB 1803 will, beginning January 1, 2028, require that already-mandated sexual harassment training include, anti-hate speech training consisting of practical guidance on recognizing, reporting, and confronting workplace speech that vilifies, humiliates, or incites hatred against people based on FEHA protected characteristics.
This bill amends Section 12950.1 of the Government Code.
AB 2495 – Unlawful Immigration-Related Practices
AB 2495 expands Labor Code Section 1019 to include prohibiting retaliation against any person for exercising or attempting to exercise any right under federal, state, and local statutes and regulations applicable to employees. The new law also makes it unlawful for an employer, or any person, to engage in conduct, related to any person’s perceived immigration status, that would reasonably tend to dissuade them from engaging in conduct that the person has a legal right to engage in under any federal, state, or local statute or regulation that is applicable to employees, or to induce a person to engage in conduct where the person has a legal right to abstain. Additionally, if an employer or other person violates Section 1019, under this new law, they will be liable for civil penalties not exceeding $10,000 per employee or person for each violation. This penalty is in addition to other remedies already provided by Section 1019.
This bill amends Section 1019 of the Labor Code.
Wage and Hour
AB 1697 – Stay-or-Pay Contract Provisions
AB 1697, as we discussed in detail here, amends 2025’s trend-setting Anti-Trap law to make the law’s restrictions on contracts effective for stay-or-pay contracts entered into on or after January 1, 2027, rather than January 1, 2026. The bill has an urgency clause such that it went into effect on September 30, 2026—immediately upon signing. The new law establishes new exceptions to the stay-or-pay prohibition for:
- Contracts entered into pursuant to a recruitment and retention program funded by a federal, state, or local government agency grant if the employee repayment obligations comply with the requirements of the grant and do not exceed the service obligations required by the grant;
- Repayment obligations arising from advanced paid time off upon voluntary separation (if conditions are met); and
- Contracts for the receipt of a discretionary or unearned monetary payment from the employer to induce the worker to be affiliated with the employer or to maintain a relationship with the employer between a securities broker-dealer, insurance producer, or investment adviser and its agents or representatives that are registered and licensed (if the contract satisfies certain conditions).
This bill amends Section 16608 of the Business and Professions Code, and Section 926 of the Labor Code.
SB 1237 – Pay Data Report Penalties
SB 1237 increases the penalty imposed on private employers for subsequent failures to file the annual pay data report from $200 per employee to $1,000 per employee. The penalty for initial violations remains $100 per employee. It also requires the Civil Rights Department to annual publish the total number of pay data reports submitted. This new law follows 2025’s significant revisions to California’s annual pay data reporting obligations, which we discussed in detail here.
This bill amends Section 12999 of the Government Code.
SB 1316 — Labor Commissioner Liens and Hearing Evidence
SB 1316 authorizes the Labor Commissioner (LC) to renew a lien created on an employer’s real property to satisfy a wage order under Labor Code section 98.2 for an additional 10 years. The new law prohibits employers from using records in certain LC proceedings under Section 1174.1—such as payroll, time, and employment records required to be maintained at the place of employment or at a central location within the state—that were not provided timely to the LC pursuant to a written request, unless the employer proactively obtained a court order excusing production. These evidence prohibitions are applicable in administrative proceedings contesting a citation for retaliation or discrimination complaints. SB 1316 also extends these evidentiary preclusions to contractors and subcontractors in hearings under Labor Code Section 1742.
This bill amends Sections 98.2 and 1174.1 of, and adds Section 1742.05 to, the Labor Code.
AB 2646 – Agricultural Workers Minimum Wages
AB 2646 requires the minimum hourly wage for an approved agricultural employee to be $19.75 per hour, to be adjusted according to the cost of living adjustments for social security benefits each January starting in 2027.
This bill adds Section 1208 to the Labor Code.
Workplace Surveillance
AB 1331 & 1883 – Workplace Surveillance
AB 1331 prohibits an employer from using a “workplace surveillance tool” for monitoring or surveilling employees in a workplace bathroom and allowing employees to leave behind workplace surveillance tools when entering a workplace bathroom unless:
- an employee is required to remain available during meal or rest periods;
- the employer has a policy requiring possession of the device for identification or safety reasons; or
- for access to locked or secure areas if the device (a) does not detect or record audio or video and (b) does not have physically embedded or attached artificial intelligence.
Workplace surveillance tools includes a “system, application, instrument, or device that collects or facilitates the collection of employee data, activities, communications, actions, biometrics, or behaviors by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, a photo-optical system, or other means.” Smoke or carbon monoxide detectors and metal detectors are expressly excluded.
AB 1883 prohibits certain employers (including government entities, universities, and labor contractors and their clients) from using a workplace surveillance tool that uses AI to collect neural data (such as gait analysis) or recognizes an individual’s emotional state.
Employers are exempted from the new law’s requirements if they are engaged in (1) the development of aircraft for use in the national airspace; or (2) the development of products or services for national security, military, space, or defense purposes where the use of a workplace surveillance tool is reasonably necessary to comply with a federal statute, a regulation, or binding federal contract.
Both new laws authorize the Labor Commissioner or a public prosecutor to enforce their provisions, and allow for civil actions seeking injunctive relief, punitive damages, and reasonable attorney’s fees and costs. Employers who violate the laws’ provisions are subject to civil penalties of up to $500 for each violation.
AB 1331 adds Part 5.8 (commencing with Section 1560) to Division 2 of the Labor Code, and AB 1883 adds Part 5.8 (commencing with Section 1580), to Division 2 of the Labor Code.
Restraining Orders
AB 2179 – Workplace Violence Restraining Orders
AB 2179 will, beginning on January 1, 2028, allow any party or witness to a petition for a restraining order to appear remotely at a hearing and will prohibit any fee for appearing remotely. Each county’s court will be required to develop rules and instructions for these remote appearances and post them on their websites. The new law also will, commencing on January 1, 2028, require courts to allow filings related to such protective orders to be submitted electronically, as specified.
The bill amends Section 527.8 of the Code of Civil Procedure and Section 6103.2 of the Government Code.
AB 1753 – Protective Orders: Firearms; Notice and Procedures
AB 1753 requires a TRO petitioner to provide prior notice to the respondent only if the court determines that requiring prior notice would not likely endanger the petitioner, proposed protected parties, or other persons. It also requires the applicant’s attorney to certify to the court under oath that providing notice to the party to be restrained in advance of filing the petition would likely endanger the safety of the petitioner or other persons, and require courts to permit a party or witness to appear remotely at a hearing for a workplace violence restraining order at no cost.
This bill amends Sections 527.6, 527.8, 527.85 of the Code of Civil Procedure.
Arbitration
AB 2155 Validity of Agreements to Arbitrate
AB 2155 makes arbitration agreements unenforceable under California law where the agreement would likewise be unenforceable under the Federal Arbitration Act, such as certain interstate commerce transportation worker agreements and claims relating to sexual harassment or sexual assault disputes.
The bill amends Section 1281 of the Code of Civil Procedure.
Civil Litigation
AB 1950 — Los Angeles Superior Court Civil Actions: Mandatory Mediation
AB 1950 authorizes County of Los Angeles Superior Court judges to order cases into mediation regardless of the amount in controversy. Those cases will be entitled to up to three hours of in-person or remote no-cost mediation services through the court’s program. These provisions will be in effect January 1, 2027, through January 1, 2032. The new law builds on the Court’s investment in ADR and the launch of its digital ADR platform in 2025, and is intended to assist with the Court’s 67% increase in civil filings since 2022.
This bill adds Section 1775.16 to the Code of Civil Procedure.
Workplace Solutions
Treat yourself and tune in to our October 5, 2026 webinar in which we’ll explore the final slate of new laws. And don’t be a stranger—check back in with us here at CalPeculiarities for spook-free updates on California policy and legislative updates.








