California's wiretapping law requires that all parties to the communication consent to the recording. Under California Penal Code Section 632 it is a crime to record or eavesdrop on any confidential communication, which includes private conversations and telephone calls, without the consent of all parties to the conversation.
I suggest you make your employees sign an acknowledgment that puts them on notice that there will be cameras recording them while on the premises. You might also consider posting signs to ensure that there is no expectation of privacy. Keep in mind that you can not have cameras everywhere, including the restroom. An attorney can help you draft the appropriate documents.
I hope this helps.
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