California Governor Gavin Newsom’s Executive Order N-6-26 aims to protect workers from the potential disruption caused by artificial intelligence, according to a May 29 announcement. The order is described as part of California’s broader effort to create guardrails for AI while supporting innovation.
The executive order instructs state agencies and other entities to analyze the effects of AI on the workforce over a three-to-six-month period, which may inform future legislation and regulation. The focus includes transparency measures such as notice requirements for employees and reporting obligations for government agencies, as well as mitigation strategies like severance policies and upskilling programs. State agencies are directed to monitor job losses linked to AI and explore support mechanisms for affected workers.
Key directives include recommendations for legislative changes, such as reviewing revisions to the California Worker Adjustment and Retraining Notification Act, identifying labor trends through biannual reports from the Employment Development Department, and developing a dashboard tracking AI’s impact on employment using unemployment insurance data. The Labor and Workforce Development Agency is also tasked with reviewing academic research on technological shifts in the workforce.
The order emphasizes labor considerations by aligning with organized labor concerns about technology adoption in both unionized and non-union settings. It highlights “worker voice,” collective bargaining, and existing protections—signaling that bargaining over AI impacts could become a policy expectation. While private-sector bargaining remains governed by federal law under the National Labor Relations Act (NLRA), automation decisions affecting job impacts are already mandatory subjects of bargaining under this act.
Efforts similar to California’s have emerged elsewhere: bills addressing worker displacement due to AI have been introduced in seven states—including Illinois, Maryland, Minnesota, Missouri, New York, Oklahoma—and at the federal level. These proposals commonly seek increased transparency around layoffs or job changes resulting from automation but have not yet become law.
Commentary suggests that employers may need to closely review communications regarding workforce restructuring tied to AI adoption. Employers are encouraged to craft careful statements about restructuring decisions involving AI, consider upskilling or redeploying employees as part of their strategy, and monitor evolving legal standards related to transparency and mitigation.
