Workplace surveillance tools.
What changed between versions
Adds a new Part 5.7 (Sections 1550-1556) to Division 2 of the Labor Code creating a comprehensive regulatory framework for workplace surveillance tools, expanding the bill from a minor technical fix to a major new area of employment law.
Includes all branches of state government, counties, cities, municipalities, school districts, special districts, and their agencies or instrumentalities within the definition of 'employer,' making public sector workers covered.
The bill's stated purpose changed from 'an act to amend Section 1102.5 of the Labor Code' to 'an act to amend Section 1102.5 and add Part 5.7 (commencing with Section 1550) to Division 2 of the Labor Code,' reflecting the dramatic expansion in scope.
Defines 'workplace surveillance tool' broadly to include video/audio surveillance, time-tracking, geolocation, electromagnetic tracking, and photoelectronic tracking - any system collecting worker data by means other than direct human observation. Also defines 'worker data,' 'vendor,' 'employer' (including all government entities), 'worker' (including job applicants and independent contractors), and 'employment-related decision.'
Requires employers to provide written notice at least 30 days before introducing a workplace surveillance tool, describing the data collected, purpose, frequency, storage, access (including vendor names), and whether it will be used for employment decisions. Employers already using tools before January 1, 2026 must comply by February 1, 2026.
Prohibits employers from transferring, selling, or licensing worker data to third parties unless the vendor is under contract to analyze the data, has a contract prohibiting resale, implements reasonable security, and agrees to joint and several liability for breaches. Prohibits sharing with government unless required by law.
Prohibits workplace surveillance tools that incorporate facial recognition, gait recognition, or emotion recognition technology. Also prohibits tools that identify or infer protected characteristics including immigration status, veteran status, religious/political beliefs, health/reproductive status, emotional/psychological state, neural data, sexual orientation, disability, criminal record, and credit history.
Prohibits employers from relying primarily on electronic surveillance data to discipline or discharge a worker. Requires a human reviewer to conduct their own investigation and compile corroborating information such as supervisory evaluations, personnel files, or peer reviews.
Requires employers to retain worker data used for employment-related decisions for at least five years, allow workers to access and correct their data, notify workers of data breaches, and require vendors to return or delete all worker data at the end of a contract.
Establishes enforcement by the Labor Commissioner (investigations, citations, temporary relief), private civil actions by workers for damages including punitive damages, and enforcement by public prosecutors. Sets a civil penalty of $500 per violation.
The fiscal committee answer changed from 'no' to 'yes,' indicating the bill now has fiscal implications due to the new enforcement and compliance requirements.