California is moving closer to drawing a line around one of the more invasive uses of artificial intelligence in the workplace, HR Dive reported.
A newly passed state bill would bar employers from using AI tools to monitor a worker's emotional state or collect certain forms of "neural data."
Here's what to know
Assembly Bill 1883 has cleared the California Legislature and now awaits action from Gov. Gavin Newsom, according to HR Dive.
If Newsom signs it, California employers would be barred from using AI systems to monitor workers' emotions. The bill also bans the collection of neural data, which it defines as information generated by measuring signals from a worker's central or peripheral nervous system.
The proposal would not eliminate workplace surveillance altogether. Employers could still use monitoring tools for other purposes like safety.
Violators would face a $500 penalty per violation. The legislation also includes exemptions for work tied to certain aircraft and products connected to national security, military, space, or defense purposes.
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More background
According to HR Dive, a March 2025 analysis by a University of Michigan associate professor of information said emotion AI's capacity to measure emotions "remains controversial and contested."
Europe has already addressed this. The EU's Artificial Intelligence Act, which took effect in August 2024, prohibits emotional monitoring in the workplace.
Burger King drew attention for rolling out its "Patty" AI assistant. The software, built into employee headsets, can detect phrases associated with friendliness, and the company said it was intended as a coaching aid rather than a way to track individual workers.
Supporters of emotion AI have promoted it for hiring, training, and safety monitoring in places such as call centers, offices, and lobbies. Korn Ferry executives said the emotion AI market could reach $9 billion by 2030.
Concerns have mounted over whether employers can rely on tools that claim to measure emotional qualities despite lingering doubts about accuracy. Miscalculations and the presence of the AI in general could negatively impact workplace conditions as well.
What's being done?
AB 1883 is part of the push in California to place guardrails around workplace AI before its use becomes even more routine.
Other proposed legislation noted by HR Dive includes SB 951, which would require employers to notify workers about mass layoffs or relocations that stem largely or entirely from AI adoption. Another measure, SB 947, would prohibit employers from allowing automated decision systems alone to handle discipline or firing decisions.
State regulators have also already issued rules limiting AI use in certain employment decisions among specific employers.
Where can I learn more?
California's proposed limits on emotion and neural surveillance are part of a broader backlash against automated systems that sort, price, and evaluate people with little transparency. These stories provide more examples of how lawmakers and workers are pushing for guardrails on AI everywhere.
• In Pennsylvania, lawmakers moved to ban AI surveillance pricing that changes costs using personal data.
• At Amazon, more than 1,000 employees signed a letter confronting AI use and surveillance ties.
• In health insurance, lawmakers sought to stop claims denials with AI before patients were shut out.
• In California, lawmakers proposed data center water-use transparency as AI infrastructure grows statewide.
California's debate over workplace emotion tracking could carry huge consequences. Taking the time to address these issues with care and sensitivity could create a better future for people whom generative AI may continue to impact.
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