California’s 2025-2026 legislative session produced a sweeping package of artificial intelligence (AI) legislation affecting employment practices, workplace surveillance, legal services, government procurement, and AI governance. Although only a handful of these measures impose immediate compliance obligations on public employers, together they reflect a clear trend toward increased regulation of AI-driven workplace decision-making and oversight of emerging technologies.
Public agencies, special districts, transit agencies, educational institutions, and other public employers should evaluate their use of automated decision-making tools, employee-monitoring systems, AI vendors, and legal-practice protocols in anticipation of upcoming compliance obligations.
The most consequential AI developments affecting California public employers are:
The Legislature also enacted several measures establishing California’s broader AI governance framework, including SB 813 and AB 1405, while the Governor vetoed AB 2656, which would have imposed advance-notice requirements before public employers deploy certain AI tools.
SB 947 Automated Decision Systems (Mandatory Human Review)
Effective July 1, 2027
SB 947 regulates the use of automated decision systems (ADS) in disciplinary...
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