On May 21, 2026, Governor Newsom signed Executive Order N-6-26, directing state agencies to study the workforce effects of AI and develop recommendations on policy responses, training, safety-net measures, and possible WARN-related updates. The Order does not impose any immediate obligations on private employers and does not directly regulate private employer use of AI. Rather, the Order directs several agencies, including the Labor and Workforce Development Agency (LWDA), the Employment Development Department (EDD), and the Governor’s Office of Business and Economic Development (GO-Biz), to do the following:

• Within 90 days, the LWDA, GO-Biz, and the Department of Finance must report on best practices and early economic warning signals of potential labor disruption, including AI’s disproportionate impact on specific demographic groups.
• Within 90 days, the EDD must launch a dashboard using Unemployment Insurance data to track AI’s effects on employment across various sectors.
• Within 180 days, the LWDA must assess whether and how the California WARN Act can function as an early-warning mechanism for AI-driven industry shifts, and provide the Governor with recommendations for possible updates to the statute.
• Within 180 days, the LWDA must review and develop recommendations on policies that provide displaced workers with a safety net, including severance standards and compensation in forms such as stock or other equity, options for expanding awareness of employment insurance programs, and strategies for connecting dislocated workers with training and upskilling resources.
• By October 15, 2026, the LWDA must review how collective bargaining is incorporating new technologies and how employee input is factored into decisions about AI adoption.
• By October 15, 2026, the EDD must develop an AI playbook expanding dislocated worker strategies for occupations exposed to AI, and must submit bi-annual summaries through December 2027 of business feedback on the role of technology in hiring and workforce decisions for inclusion in the state’s monthly jobs report.
• State agencies are also directed to evaluate worker ownership models and to support small businesses through education and incentives on AI adoption, with a view toward ensuring that AI-driven productivity gains benefit workers broadly.

The Cal-WARN Act review is perhaps the most relevant for California employers. Under the existing statute, employers with 75 or more employees must provide 60 days’ advance written notice before conducting a plant closing, mass layoff, or relocation that results in employment loss for 50 or more workers within a 30-day period. The statute was not designed with AI-driven workforce restructuring in mind, and the LWDA’s mandate is specifically to assess whether Cal-WARN can be made more responsive to emerging industry trends tied to AI. The Order does not itself amend Cal-WARN or create new employer notice obligations. Depending on the direction of the LWDA’s recommendations, however, future legislation could expand coverage thresholds, broaden the definition of a qualifying “mass layoff,” or introduce new notice considerations tied to AI-related role changes.

In addition to Executive Order N-6-26, employers should also be aware of Senate Bill 947, the No Robo Bosses Act, which is making its way through the current legislative session. The bill passed the State Senate and is currently pending in the Assembly. As currently written, it would prohibit employers from using automated decision systems to make certain employment decisions (including hiring, discipline, and termination) without human review, and would entitle workers to request the data about themselves used by any such system in the preceding 12 months. The Legislature has until August 31, 2026, to pass the bill, and the Governor has until September 30, 2026, to act on it. Because the bill is still in progress, its final scope could change before enactment. SB 947 is not part of the Executive Order, but the two initiatives reflect California’s growing focus on regulating how AI is used in employment decisions.

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