Will California’s WARN Act Catch Up With AI?

Advancements in Artificial Intelligence (AI) are moving rapidly, and it appears California is attempting to catch up in regulating AI, including in employment. While there are some AI-related employment regulations already in place, Governor Newsom’s May 2026 Executive Order N-6-26 (EO), signals that more changes may be coming, including changes to California’s WARN Act (Cal-WARN).

• As a refresher: Cal-WARN requires 60 days’ advance notice for certain closures or relocation of, or mass layoffs (50 or more employees) at certain worksites. Cal-WARN covers any industrial or commercial facility that employs or has employed 75 or more persons within the preceding 12 months.

While the EO does not change the law, it signals potential changes are on the horizon. The EO requires the Labor and Workforce Development Agency (LWDA) to review and recommend revisions and updates to Cal-WARN to ensure it is “responsive to…emerging industry trends.” This review would be due in late November 2026.

California’s attention on AI worker displacement follows the layoffs of thousands of workers at global companies directly attributing job cuts to AI adoption, such as Amazon, Oracle, Meta and many others.

Another signal that Cal-WARN may change to address AI is SB 951, the “AI Job Killer Notice Act,” currently pending in the State Legislature. In its current form, SB 951 would amend Cal-WARN to require 90 days’ notice before layoffs tied to AI-driven “technological displacement” of 25 or more employees or 25% of the workplace.

SB 951’s future is unknown. It must pass both houses in the Legislature by August 31, 2026, to move to the Governor’s Desk, where the Governor could choose to veto the bill.

What Else Does the EO Require?

The EO also requires state agencies to review and report on topics such as displaced worker safety-net programs (including a comparison of those in other countries), and how collective bargaining agreements are addressing emerging technology and regulatory barriers to employee-owned company structures.

Additionally, the EDD was required to launch a dashboard showing AI’s impacts on employment across various sectors using Unemployment Insurance data. That dashboard is now available here.

What Should Employers Do?

For now, employers should stay informed about legislative and agency updates relating to the Cal-WARN Act.  Employers should also ensure they are compliant with AI-related employment regulations that are already in place in California. Those include: California’s amendments to the Fair Employment and Housing Act (FEHA) regulations to address Automated Decision-Making Systems effective October 25, 2025 and, California’s Consumer Privacy Protection Act regulations effective January 1, 2026 and January 1, 2027 (covering employers with gross annual revenue of over $25 million or who buy, sell, or share the personal information of California residents in specified amounts).

CEA will continue to monitor legislative and agency developments. Subscribe to our newsletter and blog to stay in the loop.