AB 2027 California Assembly · 2025-2026 Regular Session

Worker data: prohibitions: artificial intelligence.

Summary

Existing law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations. Existing law authorizes the division, which is headed by the Labor Commissioner, to enforce the Labor Code and all labor laws of the state, the enforcement of which is not specifically vested in any other officer, board, or commission. This bill would prohibit an employer from using a worker's personal information, as defined, to train an artificial intelligence system to replicate, automate, or replace a worker's job, and would prohibit an employer from selling, disclosing, or otherwise providing access to a worker's personal information to a third party for the purpose of training an artificial intelligence system to replicate, automate, or replace a worker's job. The bill would prohibit a vendor providing services to an employer under a contract from providing access to the personal information of an employer's worker to a third party or using the personal information of an employer's worker to train artificial intelligence, as specified. The bill would require a contract between an employer and vendor to include a requirement that the vendor implement and maintain reasonable security procedures to protect the worker's personal information from, among other things, unauthorized or illegal access. The bill would define terms for these provisions, including "employer" and "personal information." The bill would require the Labor Commissioner and authorize a public prosecutor to enforce these provisions. The bill would authorize a worker, or their exclusive representative, who suffered a violation of these provisions to bring a civil action for damages, injunctive relief, punitive damages, and attorney's fees and costs. The bill would establish a statutory penalty for a violation of these provisions of up to $500 for each violation. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 17, 2026 Last action May 14, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

03/16/26 - Amended Assembly → 04/09/26 - Amended Assembly · 6 edits · Apr 9, 2026

MODERATE

The April 9 amendment to AB 2027 makes two major substantive changes: it removes the whistleblower protection amendment to Labor Code Section 1102.5 entirely, and it narrows the scope of AI-related prohibitions by replacing broad references to 'worker data' with the narrower term 'personal information' (defined by reference to the CCPA). The bill also removes vendors from one key prohibition and tightens venue rules for civil actions.

SCOPE

The entire amendment to Labor Code Section 1102.5 (whistleblower protections) was dropped from the bill. The previous version included a nonsubstantive change to that section; the new version contains only the new Part 5.9 on worker data protection.

The core AI prohibitions in Section 1571 were narrowed from protecting all 'worker data' to protecting only 'a worker's personal information.' Worker data (which includes job performance information) remains defined, but the specific bans on using data to train or deploy AI that replicates, automates, or replaces a worker's job now apply only to personal information.

DEFINITION

A new definition of 'personal information' was added, incorporating by reference the existing CCPA definition in Civil Code Section 1798.140. This creates a narrower, legally established standard for what data is protected under the AI training prohibitions.

ELIGIBILITY

Section 1571(b) was changed from prohibiting both employers and vendors from deploying AI trained with worker data to replicate a worker's job, to prohibiting only employers from using a worker's personal information to train such AI. Vendors are no longer directly subject to this particular prohibition.

ENFORCEMENT

The venue provision in Section 1572(f) was narrowed: civil actions can now be brought only in the county where the violation occurred or where the employer resides, removing the option of filing where the employer 'transacts business.'

TECHNICAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review. Multiple principal coauthors and coauthors were added, reflecting broader legislative support.

02/17/26 - Introduced → 03/16/26 - Amended Assembly · 11 edits · Mar 16, 2026

MAJOR

AB 2027 was dramatically expanded from a nonsubstantive amendment to the existing whistleblower protection statute (Section 1102.5) into a comprehensive new part of the Labor Code (Part 5.9, Sections 1570-1572) establishing worker data protection rules with specific restrictions on using worker data for artificial intelligence purposes. The bill now prohibits employers and vendors from collecting worker data beyond what is strictly necessary, bans training or deploying AI to replicate, automate, or replace a worker's job using that data, and imposes penalties of up to $500 per worker per violation.

Scope change

The bill's scope expanded dramatically from a nonsubstantive technical amendment to the existing whistleblower retaliation statute (Section 1102.5) to an entirely new regulatory framework governing worker data collection, AI training restrictions, vendor obligations, and enforcement mechanisms applicable to all employers including state and local governmental entities.

SCOPE

Entirely new Part 5.9 (Worker Data Protection) added to Division 2 of the Labor Code, covering Sections 1570 through 1572. The bill's scope expanded from a minor whistleblower amendment to a broad AI and worker data regulation framework.

A legislative finding declares the new provisions address a matter of statewide concern rather than a municipal affair, meaning they apply to all cities including charter cities. The new part does not preempt local ordinances providing equal or greater protection.

DEFINITION

New definitions for 'artificial intelligence' (engineered or machine-based system that infers from input how to generate outputs), 'employer' (broadly defined to include all state and local governmental entities, labor contractors), 'worker' (employees and independent contractors), and 'worker data' (personal information and job performance data).

REQUIREMENT

Employers and vendors must collect and process worker data only as strictly necessary to administer the employment relationship and fulfill specific legal obligations. Collection or use for any other purpose, including AI training to replicate, automate, or replace a worker's job, is prohibited.

Prohibits employers and vendors from deploying artificial intelligence trained with worker data to replicate, automate, or replace a worker's job.

Prohibits employers from selling, disclosing, licensing, transmitting, or otherwise providing access to worker data to any third party for the purpose of training AI to replicate, automate, or replace a worker's job.

Vendors providing services to an employer are prohibited from transferring employer's worker data to third parties for AI training purposes and from using employer's worker data to train their own AI products sold or leased to other customers.

Contracts between employers and vendors involving access to worker data must include provisions requiring reasonable security procedures and establishing joint and several liability for data breaches and violations of the new part.

ENFORCEMENT

The Labor Commissioner is authorized to enforce the new provisions through investigations, temporary relief orders, citations, and civil actions. Public prosecutors may also enforce under existing labor law enforcement provisions.

Workers or their exclusive representatives may bring private civil actions for damages, punitive damages, injunctive relief, and attorney's fees and costs.

FISCAL

Statutory penalty of up to $500 per worker for each violation. A worker, Labor Commissioner, or public prosecutor may recover either a statutory penalty paid to the worker or a civil penalty, but not both, for the same violation.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Lower · Passed

In committee: Held under submission.

lower

May 6, 2026

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 22, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 3.) (April 21). Re-referred to Com. on APPR.

lower

Apr 16, 2026

Lower · Passed

In committee: Set, first hearing. Hearing canceled at the request of author.

lower

Apr 13, 2026

Committee

Re-referred to Com. on P. & C.P.

lower

Apr 9, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended.

lower

Apr 9, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 5. Noes 0.) (April 8). Re-referred to Com. on P. & C.P.

lower

Mar 17, 2026

Committee

Re-referred to Com. on L. & E.

lower

Mar 16, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

lower

Mar 16, 2026

Committee

Referred to Coms. on L. & E., P. & C.P. and JUD.

lower

Feb 18, 2026

Lower · Passed

From printer. May be heard in committee March 20.

lower

1 primary · 28 co-sponsors