As the 2025 Legislature moves toward its August deadline, California lawmakers are considering three major employment bills targeting job advertising transparency, AI-driven workplace decisions, and worker education on their legal rights. Each reflects emerging challenges in employment law, from deceptive recruiting and algorithmic management to shifting federal labor enforcement. Here's a detailed look at what each bill proposes, its potential impact, and the timing ahead.
AB 1251:
Banning "ghost" job postings
Assembly Bill 1251, introduced by Assemblymember Marc Berman (D-Menlo Park), aims to curb deceptive "ghost" job postings -- ads for positions that are not genuinely open. It requires private employers posting job ads to disclose whether there are actual vacancies. False listings would be considered unfair competition, enforceable by the Labor Commissioner, with civil penalties between $100 and $10,000 per violation.
This bill was introduced following publication of a 2024 survey conducted by ResumeBuilder.com, in which nearly 39% of hiring managers (of the 650 surveyed) acknowledged using ghost ads to gather resume pipelines, project company growth, or create internal pressure. Beyond misleading applicants, such postings waste applicants' time, collect unnecessary personal data, and distort job market data. The author of the bill notes that AB 1251 "would add much needed transparency," and notes further that "Californians deserve to know whether the job they are spending the time and energy to apply for is actually real."
Opponents of the bill, including the California Chamber of Commerce, argue that the bill invites overly punitive enforcement, overlaps with existing laws, and may penalize harmless inaccuracies.
Potential impacts of AB 1251:
• Employers would need to audit postings, carefully label roles as real vacancies, and ensure ongoing compliance.
• HR processes may need adjustment, incorporating oversight, training, and possible legal review.
• Employers will need to find other ways to build a pipeline to meet immediate hiring needs, so there will be more need to plan ahead and carefully.
• Applicants would benefit from greater transparency and reduced time wasted.
• A violation of the bill constitutes unfair competition, allowing the state labor commissioner's office to investigate and levy fines. Enforcement via the California Department of Labor Standards Enforcement and remedies under the state's Unfair Competition Law (which including injunctive relief and restitution may spark litigation and agency actions -- especially if "minor errors" allow private suits.
SB 7
("No Robo Bosses" Act): Regulating AI in employment
Senate Bill 7, the "No Robo Bosses" Act, introduced by Senator Jerry McNerney (D-Stockton), directly addresses AI-powered automated decision systems (ADS) in employment. ADS are broadly defined, including machine learning, statistical analysis, and AI used to generate scores, classifications, or recommendations for hiring, promotion, discipline, or termination.
The Act would require employers and vendors to warn applicants and workers at least 30 days prior to the use of ADS, or if already in use, by Feb 1, 2026. Employers or vendors must also maintain and disclose an inventory of ADS tools used in employment decisions. Importantly, employers are prohibited from relying solely on ADS for critical decisions (including, but not limited to, those relating to termination of employment). Employers or vendors must also provide a written notice to a worker who has been affected by an employment-related decision made by an ADS and provide that worker with a form to appeal the decision within 30 days of the notification. The Act requires a human to perform the appellate review, and the reviewer must meet specific criteria as well as be objective in performing the review and considering the evidence.
SB 7 places California among the most proactive jurisdictions regulating algorithmic management, extending current privacy and bias protections into the AI sphere. The bill echoes broader policy momentum under the California Federation of Labor Unions' push for the regulation of worker-centric technology.
Potential impacts of SB 7:
• Employers would need to map and track their ADS systems, generate required notices, establish human oversight, and design data access and appeals frameworks.
• Risk management: Companies relying heavily on AI would have to balance efficiency gains against compliance burdens.
• Workers would benefit from due process, ensuring algorithmic decisions do not escape scrutiny. Workers will benefit from enhanced privacy protections.
• Enforcement: DLSE assumes responsibility for enforcement, and civil penalties are possible for noncompliance.
SB 294:
Workplace Know Your Rights Act
Senate Bill 294, authored by Senator Eloise Gomez Reyes (D-San Bernardino), proposes a statutory "Workplace Know Your Rights Act" to improve employee awareness of workplace and civil rights. It mandates employers to issue standalone written notices to employees (new and current) annually -- covering topics like wages, paid leave, workers' comp, disability rights, immigration inspection protocols, data privacy, anti-retaliation, union rights, constitutional protections, and emergency rights.
Additional requirements include listing government enforcement agencies, notifying designated emergency contacts if employees are detained at work, and providing Labor Commissioner-prepared template notices/videos by mid-2026.
Advocates of SB 294 assert the bill empowers a more informed workforce, reducing legal misunderstandings. Critics, including the Chamber of Commerce, caution about notice fatigue and overlapping employer obligations.
Potential impacts of SB 294:
• Employers would be required to integrate new notices into onboarding and annual review processes; remote and multicultural workplaces may require multilingual adaptations.
• Training: Responsibility would increase to ensure employees understand their legal protections -- growing administrative burden.
• Workers would benefit from clearer, centralized information -- especially on immigration protections and law enforcement interaction.
• Enforcement: Civil penalties could reach up to $500 per employee per violation, with potential public prosecutor actions.
Timing and legislative next steps
All three bills noted above have cleared one or both houses and now face committee review ahead of final votes:
• AB 1251 (Ghost job ban) passed the Assembly (62-9) and was referred to multiple Senate committees as of June 11.
• SB 7 (AI regulation) is engrossed and currently in the Assembly, awaiting committee hearings.
• SB 294 (Know Your Rights Act) has been referred to Labor & Employment and Judiciary committees, having passed prior votes and awaiting appropriations review.
Upcoming deadlines:
• Appropriations deadline (early August): Bills must pass out of fiscal committees.
• Floor deadline (mid-August): Must be passed by both houses by the legislative session end (around Aug. 31).
• Governor's Action: Signed or vetoed by Oct. 12.
Employer action items
If these bills are enacted, employers should be ready to implement the changes required by the final versions of the laws. These changes may include the following actions:
1. Audit hiring practices: Clearly label actual job vacancies, update job advertisements, and track all job postings.
2. Inventory and map AI systems: Compile comprehensive lists of automated decision systems (ADS), identify areas where employee training is needed, and plan for employee notifications regarding these systems.
3. Develop notice systems: Establish template-based written notices to inform employees of their rights, outline detention procedures, and ensure these notices are distributed annually.
4. Train HR teams: Provide education on policies for AI oversight, handling data requests, and managing appeals processes.
5. Coordinate with legal counsel: Work with legal advisors to prepare policies, develop compliance materials, and address potential enforcement risks.
6. Plan for immigration enforcement: Create emergency contact protocols and systems for notifying employees in the event of detention.
California's 2024 legislative agenda demonstrates a decisive move towards greater workforce transparency and stronger worker safeguards. Assembly Bill 1251 intends to combat deceptive job advertising by prohibiting misleading or inaccurate employment postings. Senate Bill 7 mandates human review of any workplace decision made or assisted by artificial intelligence and grants employees a formal avenue to challenge decisions they believe are erroneous. Senate Bill 294 heightens employees' awareness of their fundamental workplace rights by requiring employers to distribute comprehensive notices outlining those protections.
If enacted, these laws will impose new administrative responsibilities on employers while advancing transparency, fairness, and worker empowerment in one of the nation's most influential labor law landscapes.
The next two months are critical -- all three bills must clear fiscal and floor votes before August's deadline, after which they await Gov. Gavin Newsom's decision by mid-October.
The views expressed in this article are exclusively those of
the author and do not necessarily reflect those of Sidley Austin LLP and its
partners. This article has been prepared for informational purposes only and
does not constitute legal advice. This information is not intended to create,
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should not act upon this without seeking advice from professional advisers.