I built two cities over the limit for an unhappiness penalty, and all of my cities turned unhappy. The AI has went way over their civic limits for number of cities, and here I run into a few of their newly built cities which have no unhappiness icons. This is after 5 cities over their civic limit. Sitting Bull has Chiefdom and 11 happy cities. He is 5 cities over the limit. Shouldn't that be a -15 modifier?
So, is this supposed to be the case?
The penalties for civics is definately on. Why is it just affecting me?
If you get enough espionage points you can examine the AI cities and I have confirmed that the happiness effect of too many cities was the same for the AI as it was for me.
My current game I am still on Chiefdom, almost at Despotism. I am 7 cities over the limit. All my cities have the state religion (+3

) I have the Sphinx and Inuksuk, every city has a Master Hunter (with Ivory) and the two Govenor buildings. So that's 8

from that, and there are more resources now that give

. Mining reveals precious stones and jade that give

. Look for and develop Amber, Resin, Squash, Fig, etc. The Music Hut gives more

as you build the instruments, finishing at +5. (This is an reason to research Folk Music now - it releases 2 types of instruments that give

with the music hut. Send a buffed Hunter to the Artic regions and try to subdue a Mammoth. That's +1

, or +2

with the Master Hunter building. After Trade you can use Enclosures and gets lots of happiness. Bear, Birds, Big Cat, and Wolf all only require to Govenor's Menagerie, so I get +5 Happiness for each new city from subdued animals (Hunter +2, Pets, Menagerie, Birds)
Also check for what crime buildings you have. Be ready for +2

the turn after you discover Trade. Most of your cities will get the Soliciting crime. Build Town Watchmen at your city that gives them the most XP. If your city gives them 17 XP the Town Watchmen can be promoted to Policing V, which is -25 crime points/ turn. That's worth the 2

per turn cost.
So if you look for happiness you will find it. If only life were that way... "Hi dear, I discovered folk music today, I feel really happy!"