California SB 951 Requires AI Layoff Disclosures Under Cal/WARN
- California employers must now prepare to disclose mass layoffs driven by artificial intelligence under Senate Bill 951, which Governor Gavin Newsom signed into law.
- The law updates Labor Code sections 1400.5, 1401, and 1402.7 to target employment displacement caused by artificial intelligence or other automated technology.
- Employers triggering a Cal/WARN event due to automation must list the number of layoffs, the specific classifications or occupations affected, and the work locations involved.
California employers must now prepare to disclose mass layoffs driven by artificial intelligence under Senate Bill 951, which Governor Gavin Newsom signed into law. The legislation amends the state’s Cal/WARN Act framework to require detailed public summaries when automated systems displace workers, with the new mandates taking effect on January 1, 2027.
How does SB 951 change California WARN requirements?
The law updates Labor Code sections 1400.5, 1401, and 1402.7 to target employment displacement caused by artificial intelligence or other automated technology. Under the updated framework, future Cal/WARN notices for a mass layoff, relocation, or termination caused by automation must include specific technological disclosures alongside standard rapid response and contact information.
Employers triggering a Cal/WARN event due to automation must list the number of layoffs, the specific classifications or occupations affected, and the work locations involved. Notices must also identify the exact job functions being automated and the category or type of artificial intelligence or automated technology deployed. Furthermore, the heading This notice is for a technology displacement
must appear at the top of the filing.
Which employers and employees are covered by the rule?
The application of Cal/WARN to covered establishments remains unchanged under the new statute. Industrial or commercial facilities with 75 or more current employees, or who employed that number within the previous 12 months, fall under the mandate. An employer includes any person or parent corporation directly or indirectly owning and operating a covered establishment. An employee is defined as a person employed for at least six months of the 12 months preceding the date notice is required.
What is the state reporting timeline for automated layoffs?
The Employment Development Department is tasked with publishing public summaries of technology displacement notices on its website and integrating quarterly summaries into regular Cal/WARN data reporting. The department must also submit a formal report to the Legislature by January 1, 2028, detailing how artificial intelligence affects business hiring practices.
How should companies prepare for the 2027 mandate?
Employers evaluating automated investments should consult with legal counsel to update notice templates and compliance protocols before the January 1, 2027 effective date. Using tools like ChatGPT to draft layoff notices could potentially serve as evidence of inadequate compliance and remain discoverable in future litigation.