Chapter 5.1 - Whistleblower Protections: Catastrophic Risks in AI Foundation Models

California Labor Code — §§ 1107-1107.2

Sections (3)

Added by Stats. 2025, Ch. 138, Sec. 4. (SB 53) Effective January 1, 2026.

For purposes of this chapter:

(a)(1) “Catastrophic risk” means a foreseeable and material risk that a frontier developer’s development, storage, use, or deployment of a foundation model will materially contribute to the death of, or serious injury to, more than 50 people or more than one billion dollars ($1,000,000,000) in damage to, or loss of, property arising from a single incident involving a foundation model doing any of the following:

(A) Providing expert-level assistance in the creation or release of a chemical, biological, radiological, or nuclear weapon.

(B) Engaging in conduct with no meaningful human oversight, intervention, or supervision that is either a cyberattack or, if committed by a human, would constitute the crime of murder, assault, extortion, or theft, including theft by false pretense.

(C) Evading the control of its frontier developer or user.

(2)“Catastrophic risk” does not include a foreseeable and material risk from any of the following:
(A)Information that a foundation model outputs if the information is otherwise publicly accessible in a substantially similar form from a source other than a foundation model.
(B)Lawful activity of the federal government.
(C)Harm caused by a foundation model in combination with other software where the foundation model did not materially contribute to the harm.
(b)“Covered employee” means an employee responsible for assessing, managing, or addressing risk of critical

safety incidents.

(c)“Critical safety incident” means any of the following:
(1)Unauthorized access to, modification of, or exfiltration of the model weights of a foundation model that results in death, bodily injury, or damage to, or loss of, property.
(2)Harm resulting from the materialization of a catastrophic risk.
(3)Loss of control of a foundation model causing death or bodily injury.
(4)A foundation model that uses deceptive techniques against the frontier developer to subvert the controls or monitoring of its frontier developer outside of the context of an evaluation designed to elicit this behavior and in a manner that demonstrates materially increased catastrophic risk.
(d)“Foundation model” has the meaning defined in Section 22757.11 of the Business and Professions Code.
(e)“Frontier developer” has the meaning defined in Section 22757.11 of the Business and Professions Code.
(f)“Large frontier developer” has the meaning defined in Section 22757.11 of the Business and Professions Code.

Added by Stats. 2025, Ch. 138, Sec. 4. (SB 53) Effective January 1, 2026.

(a)A frontier developer shall not make, adopt, enforce, or enter into a rule, regulation, policy, or contract that prevents a covered employee from disclosing, or retaliates against a covered employee for disclosing,

information to the Attorney General, a federal authority, a person with authority over the covered employee, or another covered employee who has authority to investigate, discover, or correct the reported issue, if the covered employee has reasonable cause to believe that the information discloses either of the following:

(1)The

frontier developer’s activities pose a specific and substantial danger to the public health or safety resulting from a catastrophic risk.

(2)The frontier developer has violated Chapter 25.1 (commencing

with Section 22757.10) of Division 8 of the Business and Professions Code.

(b)A frontier developer shall not enter into a contract that prevents a covered employee from making a disclosure protected under Section 1102.5.
(c)A covered employee may use the hotline described in Section 1102.7 to make reports described in subdivision (a).
(d)A frontier developer shall provide a clear notice to all covered employees of their rights and responsibilities under this section, including by doing either of the following:
(1)At all times posting and displaying within any workplace maintained by the frontier

developer a notice to all covered employees of their rights under this section, ensuring that any new covered employee receives equivalent notice, and ensuring that any covered employee who works remotely periodically receives an equivalent notice.

(2)At least once each year, providing written notice to each covered employee of the covered

employee’s rights under this section and ensuring that the notice is received and acknowledged by all of those covered employees.

(e)(1) A large frontier developer shall provide a reasonable internal process through which

a

covered employee may anonymously disclose information to the large

frontier developer if the covered employee believes in good faith that the information indicates that the large

frontier developer’s activities present a specific and substantial danger to the public health or safety resulting from a catastrophic risk or that the large frontier developer violated Chapter 25.1 (commencing with Section 22757.10) of Division 8 of the Business and Professions Code, including a monthly update to the person who made the disclosure regarding the status of the large frontier developer’s investigation of the disclosure and the actions taken by the large frontier developer in

response to the disclosure.

(2)(A) Except as provided in subparagraph (B), the disclosures and responses of the process required by this subdivision shall be shared with officers and directors of the large frontier developer at least once each quarter.
(B)If a covered employee has alleged wrongdoing by an officer or director of the large

frontier developer in a disclosure or response, subparagraph (A) shall not apply with respect to that officer or director.

(f)The court is authorized to award reasonable attorney’s fees to a plaintiff who brings a successful action for a violation of this section.
(g)In a civil action brought pursuant to this section, once it has been demonstrated by a preponderance of the evidence that an activity proscribed by this section was a contributing factor in the alleged prohibited action against the covered employee, the

frontier

developer shall have the burden of proof to demonstrate by clear and convincing evidence that the alleged action would have occurred for legitimate, independent reasons even if the covered employee had not engaged in activities protected by this section.

(h)(1) In a civil action or administrative proceeding brought pursuant to this section,

a covered employee may petition the superior court in any county wherein the violation in question is alleged to have occurred, or wherein the person resides or transacts business, for appropriate temporary or preliminary injunctive relief.

(2)Upon the filing of the petition for injunctive relief, the petitioner shall cause notice thereof to be served upon the person, and thereupon the court shall have jurisdiction to grant temporary injunctive relief as the court deems just and proper.
(3)In addition to any harm resulting directly from a violation of this section, the court shall consider the chilling effect on other

covered employees asserting their rights under this section in determining whether temporary injunctive relief is just and proper.

(4)Appropriate injunctive relief shall be issued on a showing that reasonable cause exists to believe a violation has occurred.
(5)An order authorizing temporary injunctive relief shall remain in effect until an administrative or judicial determination or citation has been issued, or until the completion of a review pursuant to subdivision (b) of Section 98.74, whichever is longer, or at a certain time set by the court. Thereafter, a preliminary or permanent injunction may be issued if it is shown to be just and proper. Any temporary injunctive relief shall not prohibit a

frontier developer from disciplining or terminating a covered employee for conduct that is unrelated to the claim of the retaliation.

(i)Notwithstanding Section 916 of the Code of Civil Procedure, injunctive relief granted pursuant to this section shall not be stayed pending

appeal.

(j)(1) This section does not impair or limit the applicability of Section 1102.5, including with respect to the rights of employees who are not covered employees to report violations of this chapter or Chapter 25.1 (commencing with Section 22757.10) of Division 8 of the Business and Professions Code.
(2)The remedies provided by this section are cumulative to each other and the remedies or penalties available under all other laws of this state.

Added by Stats. 2025, Ch. 138, Sec. 4. (SB 53) Effective January 1, 2026.

The loss of value of equity does not count as damage to or loss of property for the purposes of this chapter.