When Gov. Gavin Newsom (D) signed his executive order on artificial intelligence-driven workforce disruption last month, most coverage focused on its economic implications. For California employers and employment lawyers, the more important story may be what the order signals about the future of workplace regulation.
The order creates no new private right of action and imposes no immediate compliance obligations. But it offers an early glimpse of where California policymakers may be headed: expanded workforce-displacement protections, greater scrutiny of AI’s role in employment decisions, and increased employer reporting.
California has often led the way in emerging areas of employment regulation. It appears poised to do so again with AI.
The executive order directs state agencies to undertake several initiatives that could significantly affect employers that deploy AI in the workplace.
Most notably, the order calls for recommendations regarding potential revisions to California’s Worker Adjustment and Retraining Notification Act. Like the federal WARN Act enacted in 1988, California’s WARN statute was designed for an era of physical plant closures and traditional mass layoffs.
Policymakers are now evaluating whether those notice requirements adequately address workforce reductions associated with automation, including attrition, role consolidation, and the elimination of positions.
The order also directs agencies to evaluate severance, equity, and...
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