Welcome to Issue #23 of The Compliance Brief. Every Tuesday I break down the HR and labor law updates that actually matter to small businesses — in plain English, no legal jargon.

California Just Set New Rules for AI in the Workplace

Governor Newsom signed three new laws this week that change how employers can use AI for workforce decisions — and even if you're not in California, these rules tend to shape what vendors build and offer everywhere.

The first bans collecting workers' brain-activity data or using AI to infer their emotional states. The second requires a human to review and approve any firing or disciplinary decision — AI alone can't make the call, even if your scheduling or performance software flags someone for termination. The third requires employers to disclose when a mass layoff is driven by AI or automation.

If you use any software for scheduling, performance scoring, or termination recommendations, it's worth checking in with your vendor about what "automated" actually means in their tool — because the responsibility to keep a human in the loop sits with you, not them.

Action step: Ask any HR or scheduling software vendor you use whether their tools make fully automated decisions about discipline or termination, and confirm a real person reviews those calls before they're final.

1. ADA Obligations Start on Day One — Literally

The EEOC sued a Texas real estate developer after it allegedly fired a legally blind employee on his first day without engaging in the accommodation process. Around the same time, Connecticut adopted new rules requiring employers to notify new hires of their right to request accommodations at hire, and to notify any employee within 10 days of disclosing a disability. Together, they're a clear reminder: accommodation obligations don't wait until someone's settled into the job.

2. California's CalSavers Mandate Now Covers Every Employer

California's state-run retirement program now applies to employers of every size — including businesses with just one employee. If you have California staff and don't offer a qualified retirement plan, you're required to enroll them in CalSavers or face fines of $250 per employee.

3. Alabama Voids NDAs That Silence Sexual Abuse Disclosures

Under Alabama's new "Trey's Law," any agreement — including NDAs, settlements, and employment contracts — that restricts someone from disclosing an act of sexual abuse is now void and unenforceable. If you use standard NDA or settlement templates with Alabama employees, they may need review.

✅ Confirm a human reviews any AI-flagged firing or discipline decision before it's finalized

✅ Build an accommodation-notice process for new hires, especially if you have Connecticut staff

✅ If you have any California employees, confirm you're either offering a retirement plan or enrolled in CalSavers

✅ Review NDA and settlement templates for Alabama employees against the new disclosure protections

The EEOC's guidance on the ADA interactive process walks through how to handle an accommodation request from start to finish: eeoc.gov

That's it for this week. Short, actionable, no fluff.

If this was useful, forward it to another small business owner who could use it.

See you next Tuesday.

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This is for informational purposes only and does not constitute legal advice.