California 2025-2026 Regular Session

California Senate Bill SB238 Latest Draft

Bill / Amended Version Filed 03/26/2025

                            Amended IN  Senate  March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 238Introduced by Senator Smallwood-CuevasJanuary 29, 2025 An act to add Part 5.7 (commencing with section 1550) to Division 2 of the Labor Code, relating to employment.LEGISLATIVE COUNSEL'S DIGESTSB 238, as amended, Smallwood-Cuevas. Employment: artificial intelligence. Workplace surveillance tools.Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency to administer and enforce various laws relating to employment and working conditions.This bill would state the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace. require an employer to annually provide a notice to the department of all the workplace surveillance tools the employer is using in the workplace. The bill would require the notice to include, among other information, the data that will be collected from workers and consumers and whether they will have the option of opting out of the collection of personal data. The bill would require the department to make the notice publicly available on the departments internet website within 30 days of receiving the notice. The bill would define employer to include, among other entities, public employers, as specified.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Part 5.7 (commencing with Section 1550) is added to Division 2 of the Labor Code, to read:PART 5.7. Workplace Surveillance Tools1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.(b) Department means the Department of Industrial Relations.(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.(2) Employer includes an employers labor contractor.(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.(b) The notice shall contain all of the following information:(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.SECTION 1.It is the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace.

 Amended IN  Senate  March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 238Introduced by Senator Smallwood-CuevasJanuary 29, 2025 An act to add Part 5.7 (commencing with section 1550) to Division 2 of the Labor Code, relating to employment.LEGISLATIVE COUNSEL'S DIGESTSB 238, as amended, Smallwood-Cuevas. Employment: artificial intelligence. Workplace surveillance tools.Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency to administer and enforce various laws relating to employment and working conditions.This bill would state the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace. require an employer to annually provide a notice to the department of all the workplace surveillance tools the employer is using in the workplace. The bill would require the notice to include, among other information, the data that will be collected from workers and consumers and whether they will have the option of opting out of the collection of personal data. The bill would require the department to make the notice publicly available on the departments internet website within 30 days of receiving the notice. The bill would define employer to include, among other entities, public employers, as specified.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Senate  March 26, 2025

Amended IN  Senate  March 26, 2025

 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION

 Senate Bill 

No. 238

Introduced by Senator Smallwood-CuevasJanuary 29, 2025

Introduced by Senator Smallwood-Cuevas
January 29, 2025

 An act to add Part 5.7 (commencing with section 1550) to Division 2 of the Labor Code, relating to employment.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 238, as amended, Smallwood-Cuevas. Employment: artificial intelligence. Workplace surveillance tools.

Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency to administer and enforce various laws relating to employment and working conditions.This bill would state the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace. require an employer to annually provide a notice to the department of all the workplace surveillance tools the employer is using in the workplace. The bill would require the notice to include, among other information, the data that will be collected from workers and consumers and whether they will have the option of opting out of the collection of personal data. The bill would require the department to make the notice publicly available on the departments internet website within 30 days of receiving the notice. The bill would define employer to include, among other entities, public employers, as specified.

Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency to administer and enforce various laws relating to employment and working conditions.

This bill would state the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace. require an employer to annually provide a notice to the department of all the workplace surveillance tools the employer is using in the workplace. The bill would require the notice to include, among other information, the data that will be collected from workers and consumers and whether they will have the option of opting out of the collection of personal data. The bill would require the department to make the notice publicly available on the departments internet website within 30 days of receiving the notice. The bill would define employer to include, among other entities, public employers, as specified.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Part 5.7 (commencing with Section 1550) is added to Division 2 of the Labor Code, to read:PART 5.7. Workplace Surveillance Tools1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.(b) Department means the Department of Industrial Relations.(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.(2) Employer includes an employers labor contractor.(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.(b) The notice shall contain all of the following information:(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.SECTION 1.It is the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Part 5.7 (commencing with Section 1550) is added to Division 2 of the Labor Code, to read:PART 5.7. Workplace Surveillance Tools1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.(b) Department means the Department of Industrial Relations.(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.(2) Employer includes an employers labor contractor.(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.(b) The notice shall contain all of the following information:(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.

SECTION 1. Part 5.7 (commencing with Section 1550) is added to Division 2 of the Labor Code, to read:

### SECTION 1.

PART 5.7. Workplace Surveillance Tools1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.(b) Department means the Department of Industrial Relations.(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.(2) Employer includes an employers labor contractor.(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.(b) The notice shall contain all of the following information:(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.

PART 5.7. Workplace Surveillance Tools1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.(b) Department means the Department of Industrial Relations.(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.(2) Employer includes an employers labor contractor.(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.(b) The notice shall contain all of the following information:(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.

PART 5.7. Workplace Surveillance Tools

PART 5.7. Workplace Surveillance Tools

1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.(b) Department means the Department of Industrial Relations.(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.(2) Employer includes an employers labor contractor.(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.



1550. (a) Data means any information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a worker, regardless of how the information is collected, inferred, or obtained.

(b) Department means the Department of Industrial Relations.

(c) (1) Employer means a person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, benefits, other compensation, hours, working conditions, access to work or job opportunities, or other terms or conditions of employment, of any worker. This shall include all branches of state government, or the several counties, cities and counties, and municipalities thereof, or any other political subdivision of the state, or a school district, or any special district, or any authority, commission, or board or any other agency or instrumentality thereof.

(2) Employer includes an employers labor contractor.

(d) Worker means a natural person or that persons authorized representative acting as a job applicant to, an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in a workplace.

(e) Workplace surveillance tool means any system, application, instrument, or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behaviors, or those of the public, by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking, or use of a photo-optical system or other means.

1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.(b) The notice shall contain all of the following information:(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.



1551. (a) (1) An employer shall annually provide a notice to the department of all workplace surveillance tools the employer is using in the workplace.

(2) An employer who began using a workplace surveillance tool before January 1, 2026, shall provide the notice described in paragraph (1) before February 1, 2026.

(b) The notice shall contain all of the following information:

(1) The individuals, vendors, and entities that created the workplace surveillance tool and the individuals, vendors, and entities that will run, manage, or interpret the worker data gathered by the workplace surveillance tool.

(2) The name of the model and a description of the technological capabilities of the workplace surveillance tool.

(3) Any significant updates or changes made to the workplace surveillance tool that are already in use or any changes on how the employer is using the existing workplace surveillance tool.

(4) Whether the workplace surveillance tool will affect consumers or other individuals in addition to workers.

(5) The data that will be collected from workers or consumers by the workplace surveillance tool and whether they will have the option to opt out of personal data collection.

(6) A list of all entities and individuals other than the employer that will have access to the data collected from workers and consumers.

(7) Whether the employer has disclosed the use of the workplace surveillance tool with the affected workers and consumers.

(c) The department shall make the notice publicly available on the departments internet website within 30 days of receiving the notice from the employer.



It is the intent of the Legislature to enact legislation relating to the use of artificial intelligence in the workplace.