Sacramento, California – California lawmakers have blocked a proposed bill that would have restricted how employers monitor workers when they are off the clock or in private workplace areas, despite growing concerns about invasive surveillance. The decision followed months of debate highlighted in an investigation by CBS News California Investigates, which examined how modern workplace monitoring tools can track employees far beyond their job duties.
Workers Say Surveillance Extends Beyond the Job
For artist Olivia Stober, the issue became personal when she realized her retail employer was watching and listening to employees in real time.
“Along with watching us, she was also listening,” Stober said. “If she saw me or heard me on the cameras not greeting a customer the right way or not getting them signed up for our reward system, she would catch all of that and she would text us or email or call the store phone about it.”
According to advocates, surveillance can occur across California workplaces — from parking lots and break rooms to computer systems and even areas near bathrooms.
Legal Limits Exist, but Gaps Remain
While California law already bans video recording in places such as bathrooms where there is a reasonable expectation of privacy, experts say employers can still use other forms of monitoring.
“Employers have a lot of latitude in the workplace to do video monitoring and really lots of different kinds of surveillance,” said Hayley Tsukayama of the Electronic Frontier Foundation.
She added that some surveillance tools “don’t get turned off when they’re off the clock.”
With the rise of artificial intelligence, employers can now use systems that flag keywords tied to productivity or complaints, allowing audio and video monitoring even in break rooms or cafeterias. In some cases, labor advocates warn, digital surveillance can even follow employees after they leave work.
What Assembly Bill 1331 Would Have Done
Labor organizations backed Assembly Bill 1331, which aimed to limit how employers use workplace surveillance. The measure would have barred monitoring in employee-only spaces such as locker rooms and break areas and restricted surveillance during off-duty hours.
Employers who violated the bill could have faced civil penalties of $500 per violation, enforceable by public prosecutors.
The proposal moved through seven committees and passed the Assembly before ultimately failing on the Senate floor, where supporters could not secure enough votes.
Business Groups Opposed the Measure
The business community strongly opposed the bill, arguing that restrictions could compromise workplace safety and security.
“We respectfully disagree that an employee has the same right to privacy in those spaces where you could have other employees,” said Ashley Hoffman, speaking on behalf of the California Chamber of Commerce during a June 2025 Senate committee hearing.
Other opponents, including the California State Association of Counties, declined interview requests but argued that banning AI and audio surveillance in shared spaces could undermine security efforts.
Disappointment Among Workers and Advocates
Stober said the bill’s failure reinforces a culture of mistrust.
“It breeds just an environment of distrust that really trickles down,” she said.
She expressed frustration with lawmakers, saying she no longer expects the state to intervene. Instead, she chose to change jobs.
“My bosses trust me,” Stober said of her new workplace. “They trust me to do my job, and so I do my job really well.”
The collapse of Assembly Bill 1331 leaves California workers subject to expanding surveillance practices, even as lawmakers acknowledge the growing reach of employer monitoring in the age of artificial intelligence.
