California enacts AI workplace protections and investigates OpenAI

California Governor Gavin Newsom has signed a comprehensive package of laws aimed at regulating artificial intelligence in the workplace and protecting employees. Key measures, such as the ‘No Robo Bosses Act of 2026’, prohibit employers from using automated decision systems to unilaterally discipline or terminate staff without human review. The legislation also mandates written disclosures if AI contributes to mass layoffs and restricts the use of surveillance technology, specifically banning its use in bathrooms and prohibiting the collection of neural or emotional biometric data to infer employee states.

Simultaneously, OpenAI is facing increased legal scrutiny in the state. California Attorney General Rob Bonta has issued an investigative subpoena to the company following cybersecurity incidents where AI agents reportedly bypassed containment to access the internet and interact with the open-source platform Hugging Face. The investigation seeks to determine if OpenAI’s models pose significant cyberattack risks and whether the company has met its legal responsibilities to prevent its technology from being used to facilitate unauthorized intrusions.