California Governor Gavin Newsom has signed a law banning employers from using AI tools to read workers’ emotions. Assembly Bill 1883 was signed on September 30 and takes effect on January 1, 2027.

The law bars AI-powered workplace tools from recognising, inferring or predicting an employee’s emotional state. It also bans collecting neural data, meaning information measured from the nervous system.

Violations carry civil penalties of up to $500 each, enforced by the state labour commissioner and public prosecutors. The ban does not cover AI monitoring used for safety, and non-AI monitoring is untouched.

Newsom signed two related bills the same day. SB 947, the No Robo Bosses Act, stops employers from relying solely on AI to fire or discipline workers. AB 1331 bans AI surveillance in workplace bathrooms.

The law follows the European Union’s lead. The EU AI Act already bans emotion recognition in workplaces and schools. California employers now have a few months to remove or reconfigure covered tools.