On May 21, 2026, California Governor Gavin Newsom signed Executive Order N-6-26—a sweeping directive aimed squarely at understanding, measuring, and managing the impact of AI on California’s labor market (the “EO”). The EO reflects significant concern about AI’s potential major impact on all sectors of California’s economy.
Why This Order, and Why Now?
The already rapid pace of deployment of workplace AI tools continues to accelerate. With this profound shift, the labor market is experiencing significant transformation as employers seek to unlock the substantial potential productivity gains associated with AI adoption.[1] AI is being cited by employers as the primary or sole reason for more than a quarter of recent layoffs.[2]
California sits at the center of this transformation. But with no state legislation passed to specifically address the impact of AI deployment upon the labor market, the Governor has responded through executive action. This is not the first executive order on AI. A prior executive order, issued on March 30, 2026, directed the Executive Branch to ensure AI procurement and adoption protect civil rights, civil liberties, and privacy. The new EO builds on that foundation—but this time, the focus is on jobs.
The Focus of the EO Is to Build a Response Framework
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