California Governor Gavin Newsom’s Executive Order N-6-26, signed on May 21, 2026, directs California agencies to study the impact of artificial intelligence on the workforce and recommend potential updates to labor and employment laws. Although the order does not create any immediate compliance obligations for employers, it signals the state’s growing focus on AI-related job displacement and could serve as the foundation for future legislation or regulations. One key area of review is the California WARN Act, with state officials tasked with evaluating whether layoff notification requirements should be expanded to address workforce reductions caused by AI and automation.
The order also requires the California Labor and Workforce Development Agency to examine protections for displaced workers, including severance benefits, equity compensation, and temporary employment programs, while comparing California’s approach with practices in other jurisdictions. In addition, the agency must assess how unions and collective bargaining agreements are addressing the adoption of AI and other emerging technologies, particularly the role of employee input in workplace technology decisions. These reviews could influence future policy proposals aimed at protecting workers affected by technological change.
Other provisions direct the Employment Development Department to create tools and reports tracking AI’s effects on employment and workforce trends, potentially leading to new employer reporting requirements. The order also highlights California’s existing restrictions on discriminatory automated decision-making in employment and encourages employers to review their use of AI in hiring, performance management, and termination decisions. Finally, the state will explore employee ownership models and ways workers might share in AI-driven productivity gains, signaling continued interest in policies that balance innovation with worker protections.