California signs law banning AI tools that assess employee emotions or collect neural data

What happened

On September 30, 2026, Governor Gavin Newsom signed legislation that prohibits employers from using AI-powered workplace surveillance to evaluate employees' emotional states or gather neural data. The law creates new restrictions on AI-based employee monitoring across the state.

Why it matters for trust and compliance

• Its status is signed. It is enacted but may not be in force yet. Check the effective date before planning around it.
• The law expands employee privacy protections by banning invasive AI surveillance of emotional and neural information.

Who is affected

Recommended actions

1. Inventory AI or automated decision systems in scope and their assessments.
2. Confirm handling of sensitive data categories meets the stricter rules.