California continues to police artificial intelligence (“AI”) in the workplace. Following proposed rulemaking on the use of AI for significant employment decisions, as we reported here, Assemblymember Isaac Bryan introduced Assembly Bill 1221 (“AB 1221”) this legislative session. The bill aims to regulate workplace surveillance tools, including AI, and use of employee data derived therefrom. Applicable to employers of all sizes, AB 1221 could present significant challenges for businesses.

Key Provisions of AB 1221

If enacted, AB 1221 would regulate workplace surveillance tools and the data they collect. The bill broadly defines a “workplace surveillance tool” to encompass any system or device that actively or passively collects or facilitates the collection of worker data, activities, communications, biometrics and behaviors and includes incremental time-tracking tools, geolocation, and photo-optical systems, among others. The bill has several key provisions that will impact businesses:

• Notice: Employers will be required to provide written notice to employees 30 days before using any surveillance tool, detailing the data collected, its purpose, frequency, storage, employment-related decisions, and workers’ rights to access and correct their data.
• Data Security: The bill also sets forth robust measures to protect employee data, including required provisions in employer contracts with vendors they engage to analyze or interpret employee data.
• Prohibited Technologies: ...

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