California lawmakers are moving to draw a firm line around one of artificial intelligence's most unsettling workplace uses: tools that claim to detect how workers feel.
The bill, now before the governor, would prohibit employers from using AI to evaluate employees' emotions or collect information tied to their nervous systems.
Here's what to know
After both chambers of the California Legislature passed Assembly Bill 1883 in late August 2026, it was sent to the governor. As HCA Magazine reported, the measure would add Part 5.8 to the California Labor Code and would block employers from using AI workplace surveillance for two purposes: collecting employees' neural data and identifying, inferring, or predicting their emotional states.
The bill uses a wide definition of "employer," reaching private companies, state agencies, the University of California, charter cities, counties, school districts, transit districts, and labor contractors, including farm and foreign labor contractors.
It also defines a "workplace surveillance tool" just as widely. The term would cover any system, application, or device that collects employee data, activities, communications, biometrics, or behaviors by means other than direct observation, including video, audio, geolocation, electromagnetic tracking, and continuous time-tracking tools.
The proposal is not a blanket ban on workplace monitoring. Employers could still use AI for safety purposes, and surveillance that does not rely on AI would remain allowed.
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More background
The bill defines neural data as information generated by measuring an employee's nervous-system activity.
Lawmakers said the measure addresses a matter of statewide concern, so its rules would apply throughout California, including in charter cities that might otherwise assert local control over employment regulation.
A limited exemption would apply to employers working under federal statutes, regulations, or binding federal contracts connected to aircraft development, national security, military, space, or defense operations, but only when the surveillance is "reasonably necessary" for compliance.
If enacted, the bill would curb the use of software that evaluates a worker's mood or emotional state during the workday, even though other forms of monitoring would still be permitted.
What's being done?
The Labor Commissioner and public prosecutors could investigate alleged violations and file civil cases under the measure, which carries penalties of up to $500 for each violation.
It also permits injunctive relief, punitive damages, and reasonable attorneys' fees.
If the governor approves the bill, employers would have to examine whether any current or planned monitoring technology uses AI to analyze emotional states or gather data from employees' nervous systems. That determination could decide which tools remain in place and which must be discontinued.
AB 1883 has not become law. The next step is the governor's decision, which will determine whether California formally adds the new restrictions to its Labor Code.
Where can I learn more?
For more on how AI is changing work and fueling pushback over surveillance and job losses, these stories offer useful context. They cover reported side effects of workplace AI, corporate adoption, employment fears, public resistance, and Amazon employees' criticism of the company's AI direction.
• A 2026 report found AI at work can backfire, complicating productivity and morale goals.
• Thousands of CEOs say AI in the workplace is spreading faster than expected.
• One prominent investor calls AI's impact on employment terrifying and deeply destabilizing.
• Public anger is growing as AI strains jobs and water while driving up power demand.
• At Amazon, workers warned the company's AI use could enable militarized surveillance.
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