California has banned employers from using AI to read workers’ emotions. Here is what the new law, Assembly Bill 1883, actually does.

The law targets two specific capabilities. Employers may not use AI tools to recognise, infer or predict an employee’s emotional state. They also may not use AI to collect neural data, meaning information measured from the nervous system.

It does not ban all workplace monitoring. AI surveillance used for safety is still allowed. Non-AI monitoring, like a manager directly observing work, is untouched.

The law covers a wide range of employers: private companies, state agencies, the University of California, counties, school districts and labour contractors. Violations carry civil penalties of up to $500 each.

It takes effect on January 1, 2027, giving employers time to remove or reconfigure tools. One narrow exemption covers federal defence and national-security work. The European Union already bans emotion recognition at work under its AI Act.