California Passes Sweeping AI Legislation Covering Workplace, Child Safety, and Transparency
Key Takeaways
- California lawmakers advanced a wide-ranging slate of AI bills in 2026, addressing workplace regulations, child safety, and transparency requirements that could shape policy in other states. Governor Newsom has until the end of September to sign or veto these measures.
- California passed companion chatbot laws requiring operators to establish child safety protections including self-harm protocols, parental controls, and restrictions on harmful interactions. The state also approved a five-year moratorium on toys with companion chatbots for children under 16.
- California's workplace AI bills would restrict how employers use automated decision systems, requiring human review before disciplining or terminating workers and prohibiting the use of neural data collection or emotional recognition tools. Employers would also need to disclose whether AI contributed to mass layoffs under the state's WARN Act.
- The legislature approved bills expanding AI transparency requirements, including mandates for large online platforms to label AI-generated content and for businesses to disclose when customer service chatbots are not human interactions.
- California lawmakers passed multiple bills regulating AI use in professional services, including restrictions on AI performing licensed clinical functions in health care and requirements for attorneys and mental health professionals using generative AI.
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California is a national leader in technology regulation, particularly on artificial intelligence, so understandably many onlookers were paying close attention as lawmakers wrapped up the 2026 legislative session in Sacramento this week. Before adjourning for the year on Monday, the lawmakers advanced a wide-ranging slate of AI bills addressing issues including child safety and companion chatbots, workplace uses of AI, transparency and digital replicas, high-stakes applications, and auditing and accountability requirements that could shape policy in other states.
Overall, California lawmakers considered 96 AI-related bills this session, but less than half passed both chambers and made their way to the governor. And of those bills sent to Gov. Gavin Newsom (D), many were pared back from their original form, with penalties reduced, enforcement delayed, or scope narrowed to cover fewer companies and activities than first proposed. Transparency continued to be a major theme in the approach to AI regulation, with lawmakers advancing several measures aimed at making consumers and the public more aware of when artificial intelligence is being used. The governor has until the end of the month to decide the fate of these bills, whether they'll be signed into law or vetoed.
Automated Decision System (ADS)
An automated decision system is a computational process, including one derived from machine learning or artificial intelligence, that makes or assists in making decisions, judgments, or predictions that impact individuals. In the employment context, these systems can be used to screen job applicants, evaluate employee performance, determine promotions or discipline, or make termination decisions. California's proposed legislation would require human review of ADS outputs before they are used to discipline or terminate workers, reflecting growing concerns about algorithmic bias and the need for human oversight in consequential employment decisions.
Frequently Asked Questions
What AI bills did California pass in 2026 that are waiting for Governor Newsom's signature?
California lawmakers passed less than half of the 96 AI-related bills considered this session, advancing measures on companion chatbots, workplace AI use, transparency requirements, digital replicas, and AI auditing to Governor Newsom's desk. Key bills include SB 1119 adding child safety protections for companion chatbots, SB 947 restricting automated decision systems in employment, and SB 813 establishing a framework for independent verification of AI models. The governor has until September 30, 2026 to sign or veto these bills.
Does California's new companion chatbot law apply to all AI chatbots or just ones for children?
California SB 1119, which passed the legislature and awaits the governor's signature, specifically targets companion chatbot operators and would require safeguards for child users including self-harm protocols, parental controls, usage limits, and restrictions on harmful interactions. The bill would also restrict targeted advertising and the use of children's personal information, and require operators to conduct risk assessments and child safety audits. A separate bill, SB 867, would impose a five-year moratorium on toys with companion chatbots intended for children under 16.
What are California's new requirements for employers using automated decision systems to fire workers?
California SB 947, which passed both chambers and is awaiting the governor's decision, would require human review of any automated decision system output before it is used to discipline or terminate a worker. The bill would also restrict employers from using the technology to undermine labor or civil rights laws, infer a worker's protected status, run predictive behavioral analysis for employment decisions, or retaliate against workers exercising their legal rights. Late-session amendments removed provisions governing automated deactivation decisions that had particular implications for gig-economy workers.
Which states besides California are creating independent verification organizations for AI safety audits?
Connecticut enacted a pilot program (CT SB 5) allowing state regulators to approve up to five independent verification organizations for AI auditors, while Virginia passed a law (VA SB 384) directing its Technology and Science Commission to study the model. California lawmakers approved SB 813, which would direct the Government Operations Agency to develop requirements for independent verification organizations, though it awaits Governor Newsom's signature. California also passed AB 1405, which would create a separate registry for AI auditors with registration requirements starting in 2029.
What disclosure requirements did California pass for AI-generated content in advertising and political campaigns?
California lawmakers passed several bills requiring disclosures for AI-generated content, including SB 1050 for advertisements using "synthetic performers" and AB 2025 for digitally altered rental property images. For political content, AB 502 would narrow restrictions on deceptive election content to 30 days before an election and apply to material that would affect voter decisions or public confidence in elections, while AB 686 extends disclosure requirements for political deepfakes of candidates until 2031. All these bills await Governor Newsom's signature by September 30.
