California Governor Gavin Newsom (Democrat) signed a bill on Wednesday that prohibits California companies from collecting employees' brain activity data or inferring employees' emotional states through AI-driven monitoring tools.

The bill (AB 1883) restricts employers' use of various systems, including video and audio surveillance, continuous work-hour trackers, geolocation, and electromagnetic tracking. If these systems use artificial intelligence to collect neural data or identify employee emotions, they will be subject to strict restrictions.

The new law provides for civil penalties of up to $500 per violation, with enforcement handled by the state labor commissioner and public prosecutors.

In his signing statement, Newsom urged state lawmakers to clarify the scope of this new law as well as another related bill (AB 1331), which aims to limit employer monitoring in workplace restrooms.

Although many bills have been proposed in multiple U.S. states to restrict corporate use of AI in workplace decision-making or personnel management, very few have actually passed. An Illinois law regulates AI video interview analysis in the hiring process, while Maryland has restricted the use of facial recognition technology.

Recent state legislative actions, including Colorado's comprehensive revision of its AI law, have mainly focused on transparency requirements.

In 2025, Newsom vetoed a bill that had planned to impose broader restrictions on corporate use of AI and algorithmic tools for personnel decisions.