Assembly advances SB 238 requiring disclosure and evaluation when AI systems monitor workers

Sen. Smallwood Cuevas presented SB 238, a bill the author described as promoting transparency and accountability when AI systems monitor employees.

Cuevas said nearly seven in 10 U.S. workers are subject to electronic monitoring and described emerging tools such as wearables and sensors that collect health and behavioral data. "Without oversight, AI tools risk embedding bias, undermining privacy, and enabling digital discrimination," she said. Witnesses including Yvonne Fernandez of the California Federation of Labor Unions and multiple civil‑rights and labor organizations expressed support, saying transparency is necessary to protect workers from opaque systems that can be used for surveillance and punitive action.

Opponents, represented by several trade and industry groups including the California Credit Union League and the California Chamber of Commerce, expressed concerns that public disclosure of internal security and monitoring practices could expose vulnerabilities and that required disclosures might be broad enough to include routine security systems used by financial institutions. Several local government associations and hospital groups also registered respectful opposition unless amended.

Cuevas told the committee that the bill would not mandate disclosure of source code, passwords or technical architecture that would compromise cybersecurity, and said the intent is to provide a general description of AI usage in workplaces. The committee voted to pass and re‑refer SB 238 to the Committee on Privacy and Consumer Protection by recorded roll call.