California employers will begin 2027 with a set of new employment-law obligations. Unlike recent legislative cycles, 2026 did not produce a major wave of new wage-hour or PAGA legislation. Instead, lawmakers focused on emerging workplace issues, including artificial intelligence, employee surveillance, immigration-related retaliation, employment contracts, leave, and workplace safety.
Several of the most significant laws take effect January 1, 2027, while others have later effective dates. Employers should use the remainder of 2026 to identify the changes that require policy revisions, management training, contract updates, or technology audits.
Below are some of the more pertinent and widely applicable pieces of employment-related legislation that were signed into law. However, employers should consult with employment counsel for any enforcement or industry-specific rules and regulations that may be taking effect in addition to these.
Perhaps the most significant development of the 2026 legislative session is California’s first substantial legislative package specifically regulating AI in the workplace.
S.B. 947: Human Review of AI-Assisted Discipline and Termination – Effective July 1, 2027
S.B. 947, the “No Robo Bosses Act,” will restrict employers’ use of an automated decision system, known as “ADS,” in connection with employee discipline and termination.
The law prohibits an employer from relying solely on an ADS to make a disciplinary...
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