At a Glance
- California Order directs agencies to examine the effects of AI on the workforce, which may support future legislation and regulation.
- Order is part of expanding effort to shield workers from AI disruption.
Amid a wave of AI-adjacent layoffs, California Governor Gavin Newsom’s Executive Order N-6-26 (the “Order”) takes steps to protect workers from the potential disruption posed by ongoing AI innovation. According to the accompanying press release, it is part of “California’s comprehensive approach in creating commonsense guardrails balanced with opportunities to advance innovation.”
The Order directs California agencies and other entities to perform various analyses of the effects of AI on the workforce, with an initial specified time horizon of three to six months, which may support later legislation and regulation.1
What is the Order focused on?
The Order focuses on transparency (including notice to employees and reporting to government agencies) and mitigation obligations (such as required severance and upskilling). Specifically, the Order directs state agencies, academic institutions, and other public entities to monitor and explore various ways to mitigate the effects of job losses stemming from AI. Salient directives include:
- Recommendations for legislative change: The Labor and Workforce Development Agency (LWDA), in coordination with other state agencies and industry partners, is directed to review and provide recommendations on revisions to the...
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