Workplace surveillance tools.

A new definition of 'business' is added: a for-profit entity (sole proprietorship, partnership, LLC, corporation, association, or other legal entity) that employs more than 100 people and does business in California. The primary reporting obligation now falls on 'businesses' rather than all 'employers,' exempting small employers under 100 workers and non-profit organizations.

Section numbering is reorganized: Part 5.7 now commences with Section 1560 instead of 1550, and the bill title is updated to note it also repeals Section 1563 of the Labor Code.

A new civil penalty of $500 per violation is added for businesses that fail to comply with the reporting requirements (new Section 1562).

Businesses must now send the annual surveillance notice directly to their employees and any union representing those employees, in addition to filing it with the department.

The public website disclosure requirements are expanded to include: the list of tools surveilling employees, categories of information collected, purpose for each category, how information is used, retention period, whether information is sold or shared and with which entities, industry type, and unionization status.

A new requirement mandates the Department of Industrial Relations to submit a report to the Legislature by January 1, 2029, compiling all notices received. The report must include a breakdown by industry type, unionization status, and corporate profit generated from selling worker data. This reporting section sunsets on January 1, 2033.

The standalone definition of 'data' is removed. The term 'data' is replaced throughout the bill with 'personal information,' which already had its own definition.

The legislative intent statement directing future legislation on artificial intelligence in the workplace was deleted, removing the bill's broader AI policy framing and narrowing it to workplace surveillance tools only.

A new definition of 'personal information' was added covering any information linked to a worker or a consumer, replacing the narrower 'data' term that referenced only workers.

A new definition of 'significant updates or changes' was added, specifying that only changes materially altering a tool's function or scope (new data collection, analysis capabilities, or third-party access) count as significant, while routine maintenance is excluded.

A new exemption was added stating employers are not required to report tools used exclusively for basic IT operations such as spam filters, antivirus software, or server uptime monitors.

References to 'data' throughout the notice requirements were updated to 'personal information,' aligning the reporting language with the new definition.

Fiscal committee review was changed from not required to required, indicating the bill now has a fiscal impact that must be reviewed.

The bill now specifically targets 'workplace surveillance tools' rather than just artificial intelligence, defined broadly to include video/audio surveillance, time-tracking tools, geolocation, electromagnetic tracking, and photo-optical systems.

Employers must annually notify the Department of Industrial Relations about all workplace surveillance tools in use. Employers who began using tools before January 1, 2026 must file by February 1, 2026.

The annual notice must include: who created and manages the tool, model name and capabilities, significant updates, whether consumers are affected, what data is collected and whether opt-out is available, which third parties access the data, and whether workers/consumers have been disclosed the tool's use.

New definitions added for 'data,' 'department,' 'employer' (explicitly including public employers such as state agencies, counties, cities, school districts, and special districts), 'worker' (including job applicants and independent contractors), and 'workplace surveillance tool.'

The Department of Industrial Relations must make each notice publicly available on its website within 30 days of receipt, creating a public transparency mechanism.

The fiscal committee vote changed from 'no' to 'yes,' indicating the amended bill now has fiscal implications requiring fiscal committee review.