USA - California Moves Closer to Regulating AI-Driven Workplace Surveillance
California, USA is leading efforts to regulate artificial intelligence (AI) in employment. Following earlier proposals on AI use in significant employment decisions, Assembly member Isaac Bryan introduced Assembly Bill 1221 (AB 1221) on February 16, 2024, which seeks to regulate workplace surveillance tools, including those powered by AI, and the use of employee data these tools collect.
As of May 7, 2025, AB 1221 has been referred back to the Assembly Appropriations Committee. If passed and signed into law, it would establish one of the broadest workplace surveillance frameworks within the US.
If enacted, AB 1221 would apply to employers of all sizes and set some of the most comprehensive workplace privacy standards in the country.
Key provisions include:
Advance notice: Employers must provide written notice at least 30 days before using any workplace surveillance tool. This notice must detail the type of data collected, the tool’s purpose, frequency of use, data storage practices, its role in employment decisions, and workers’ rights to access and correct their data.
Data security: Employers must implement robust data protection measures, including contractual requirements for third-party vendors handling employee data.
Technology restrictions: The bill bans the use of certain technologies, including facial recognition, gait analysis, neural data collection, and emotion recognition.
Limits on inferring protected characteristics: Employers are prohibited from using surveillance tools to infer personal characteristics such as immigration status, disability, religious beliefs, political affiliations, health or reproductive history, sexual orientation, or any other status protected under California’s Fair Employment and Housing Act.
Restrictions on disciplinary use: Employers may not rely exclusively on surveillance data for disciplinary actions. If they intend to use such data, they must notify the employee, provide an opportunity to correct it, and adjust any related personnel decisions within 24 hours if warranted.
Enforcement and penalties: The bill authorizes the California Labor Commissioner to enforce compliance and introduces a USD 500 civil penalty per violation. It also provides employees with a private right of action, allowing them to seek damages, injunctive relief, and attorneys’ fees.
Areas of Uncertainty
Despite its comprehensive scope, AB 1221 leaves several questions unanswered. Terms like “significant updates” to surveillance tools and “up-to-date cybersecurity safeguards” are not clearly defined, which may create ambiguity and inconsistent enforcement. Additionally, the bill allows for the recovery of noneconomic damages, such as for emotional distress, potentially expanding employer liability.
Ukraine - Updates Legal Framework for Remote Work
As of 2 May 2025, the Law of Ukraine “On Amendments to the Labour Code Regarding the Improvement of Legal Regulation of Certain Issues of Home-based and Remote Work” has officially come into force.
The law introduces updates to the Labour Code, specifically focusing on the rights and procedures for remote and home-based employees. Key changes include:
Employers and employees must now agree in advance within the employment contract, on the terms and procedures for business trips involving remote or home-based work.
For remote employees without a fixed workplace, the place of departure and return for any business trip must be agreed upon (including electronically) and recorded in the official business trip order. Employees must notify the employer of their current location prior to departure.
Travel to an employer’s office by a remote employee may now be classified as a business trip.
Employees may request to work from home or remotely if their child (under 14 years old) is enrolled in distance learning at a general secondary education institution. This option is available only with the employer’s consent.
Hong Kong – New Compensation Rates for Workplace Injuries
Effective 17 April 2025, the compensation levels for employees injured at work or suffering from occupational diseases in Hong Kong have increased. Monthly earnings are now subject to a higher maximum threshold for the purpose of calculating compensation for fatal cases and permanent total incapacity.
For work injuries caused by accidents or occupational diseases on or after 17 April 2025, the maximum monthly earnings for the purpose of calculating compensation for death and permanent total incapacity are capped at HKD 38,670. This is equivalent to approximately USD 4,962.56. For incidents occurring between 13 April 2023 and 16 April 2025, the maximum was HKD 36,550. This is equivalent to approximately USD 4,690.60.
The minimum amount of compensation payable for permanent total incapacity has also been updated. From 17 April 2025 onwards, the minimum is HKD 584,220. This is equivalent to approximately USD 74,975.58. Between 13 April 2023 and 16 April 2025, the minimum was HKD 552,190. This is equivalent to approximately USD 70,865.03.