As AI develops faster than policymakers can respond, Governor Gavin Newsom signed Executive Order N-6-26 (EO) in an effort to close the gap. The Order directs state agencies to partner with labor, academia, and the private sector to recommend how California can “manage and mitigate potential disruptions” to the labor market and “help guide future policymaking and regulations to protect the public, workers, and our economy.”

Four key directives—and what they may mean for California businesses

The EO addresses a wide range of workforce concerns, but four directives stand out for their potential to shape future legislation and the workforce:

• Reviewing California’s Worker Adjustment and Retraining Notification (WARN) Act
• Requiring biannual employer reporting on AI’s role in hiring and workforce decisions
• Examining collective bargaining’s role in addressing AI in the workplace
• Exploring voluntary or mandatory revenue redirection from AI firms toward the “public good”

• What it does: The EO directs the Labor and Workforce Development Agency (LWDA) to “review and provide to the Governor recommendations on revisions and updates” to the WARN Act “in a manner that is responsive to, and effectively provides early warning data on, emerging industry trends.”
• Why it matters: California’s WARN Act currently requires employers with 75 or more employees to file a WARN notice when they lay off 50 or more employees within a 30-day period, when they close a plant or facility, or when...

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