Introduced by Assembly Member Nick Schultz on February 12, 2026, Assembly Bill 1898 (AB 1898) would impose significant new notice and transparency obligations on California employers that use AI-powered tools to manage workers or make employment-related decisions. If signed into law, this bill would represent one of the most comprehensive workplace AI disclosure requirements in the country.

• California Assembly Bill (AB) 1898 would impose significant new notice and transparency obligations on California employers using AI-powered tools for employment-related decisions.
• AB 1898 would require employers to provide advance written notice, obtain signed acknowledgments, and maintain an annual inventory of AI tools, with penalties for noncompliance.
• Employers may want to begin preparations now by conducting AI tool audits, assessing coverage, building notice processes, planning for acknowledgment requirements, preparing annual disclosure lists, evaluating vendor agreements, and training managers and HR.

The Problem AB 1898 Is Designed to Solve

The backdrop for this legislation is striking. AI adoption has surged—from 20 percent of firms in 2017 to 72 percent by 2024—yet workers are largely in the dark. A 2025 study found that only 22 percent of workers were aware when they were being monitored, and up to 44 percent did not know their employers were using biometric surveillance. Researchers have also found that electronic monitoring can create a climate of fear that undermines...

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