California limits workplace AI; federal judge blocks $100,000 H-1B fee

# What happened

On September 30, 2026, California enacted several laws that limit how employers can deploy artificial intelligence at work. The same week, Judge Haywood Gilliam Jr. of the Northern District of California issued a preliminary injunction blocking President Trump's $100,000 fee for skilled foreign workers seeking H‑1B visas.

# California's AI bills — what they do

The new California laws include multiple focused limits on employer AI use:

• SB 947: Bans using AI to make firing or disciplinary decisions without human oversight.
• SB 951: Updates California's WARN Act to require disclosure about AI's role in layoffs.
• AB 1883: Prohibits using potentially biased or invasive AI tools to determine workers' emotional states.
• SB 1331: Bans AI surveillance in bathrooms.

The bills were supported and sponsored by the California Federation of Labor Unions, AFL‑CIO. Lorena Gonzalez, the federation's president, said the set of laws offers an example of "how we can begin to put guardrails on AI at work to ensure human control over this technology, limit surveillance, and put workers first." Liz Schuler, president of the national AFL‑CIO, contrasted California's approach with the Trump administration's stance toward AI and business leaders.

# Federal court blocks $100,000 H‑1B fee

# Why these moves matter to workers and employers

California's laws directly constrain employer tools and workplace practices. Employers using automated systems for discipline, performance monitoring, or layoff planning must now incorporate human oversight, update notices to workers, and avoid certain intrusive uses of AI. The attorney-specific rules alter how legal professionals can use public AI tools and require disclosure of AI assistance in filings.

The blocked H‑1B fee affects employers who hire specialized foreign workers. If the injunction and prior decisions hold, employers will not face the $100,000 surcharge while litigation continues.

# Short timeline of related labor items

# Practical next steps for readers

Employers in California should review AI systems used for hiring, discipline, emotional monitoring, surveillance, and attorney workflows to confirm compliance. Human resources and legal teams should update policies and WARN notices to reflect AI's role. Employers that hire H‑1B workers should monitor the litigation over the fee for developments that will affect hiring costs.

# Bottom line

California's package creates concrete limits on workplace AI and specific duties around disclosure and oversight. At the federal level, courts are currently blocking a major H‑1B fee that would have raised costs for employers hiring skilled foreign labor. Together, these developments change legal and operational expectations for employers and workers alike.