California Prepares Ban on Employee 'Mind Reading' — Employers Unhappy

California legislators are working to address the gap between emerging neurotechnology and existing legal norms, similar to past issues with artificial intelligence displacing workers. They are advancing bills AB 1883 and AB 1542 to regulate the collection and use of neural data from brain and peripheral nervous system activity, which can be gathered through consumer devices like headphones, headbands, bracelets, and AR headsets. These devices, combined with machine learning algorithms, can infer states such as attention, fatigue, and stress. AB 1883 targets workplace surveillance systems, banning employers from using them to recognize or predict emotional states or collect neural data, except for safety and specific defense, aviation, and space programs. It imposes fines up to $500 per violation and allows legal action. AB 1542 would prohibit companies from selling or sharing sensitive personal information, including neural data, to third parties, building on a 2024 law (SB 1223) that classified neural data as sensitive. A study by the Neurorights Foundation found that 20 of 30 consumer neurotech manufacturers allowed data transfer to third parties in their policies. Lawmakers are concerned less about literal mind reading and more about the rapid increase in accuracy of decoding neural signals via AI. Starting January 2027, California Privacy Protection Agency requirements for automated decision-making systems will add another layer of control. Employers are resisting these measures, and lawmakers admit they may not stop large corporations from using neural data internally.