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California restricts AI use in employment decisions

Inside Practice · OCTOBER 7, 2026 · 1 MIN READ

On September 30, 2026, California enacted workplace-AI measures that, according to the Associated Press, prohibit employer use of biometric data to infer workers’ emotions, require written notice when AI is responsible for mass layoffs and bar reliance on AI to make firing decisions. The measures extend AI governance beyond procurement and privacy into workforce decision architecture. Legal departments will need joint ownership across employment, privacy, HR, technology and records teams, particularly where vendors embed scoring or prediction inside ordinary workforce platforms. Outside counsel should expect clients to ask for system inventories and decision logs before they ask for abstract policy advice.

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