California's new 2027 employment laws cover AI, surveillance, Cal/WARN, arbitration and leave, most effective January 1
Key points
- Most new laws take effect January 1, 2027
- California minimum wage rises to $17.40 an hour
- AB 1331 bars surveillance tools in workplace bathrooms
Law firm Nixon Peabody has outlined several California laws taking effect in 2027, covering artificial intelligence (AI), workplace surveillance, automated decision systems, arbitration, wage reporting, Cal/WARN layoff notices and paid leave. Unless noted otherwise, the laws take effect January 1, 2027. The state minimum wage will rise to $17.40 an hour, and the salary threshold for the white-collar overtime exemption will rise to $72,384. AB 1331 bars employers from using surveillance tools in workplace bathrooms. For reference only; not legal advice.
What employers should do
- Review and revise policies, vendor practices and notices covering AI and automated decision systems
- Update workplace surveillance rules to confirm no monitoring tools are used in bathrooms
- Check payroll against the higher minimum wage and white-collar exempt salary threshold
Policy details
- Jurisdiction
- California
- Status
- Signed, not yet effective
- Effective date
- 2027-01-01
- Employers covered
- California employers
- Official source
- View official source ↗
Original report: Nixon Peabody ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.