Governor Newsom Signs Executive Order to Confront Economic Impacts of AI | CDF Labor Law LLP

Governor Newsom signed Executive Order N-6-26, mandating California agencies to report on AI’s impact on the labor market and its disproportionate effects, within specified timelines.
Within 90 days, the Labor and Workforce Development Agency must analyze potential workforce impacts due to technological shifts, specifically AI.
Within 180 days, the Labor and Workforce Development Agency will need to assess existing WARN Act policies and recommend revisions, as well as propose policies to strengthen worker compensation safety nets.
By October 15, 2026, the LWDA will collaborate with entities to explore AI’s role in collective bargaining, and the Government Operations Agency will advise on public good-focused AI developments.
The Employment Development Department must create an AI playbook for dislocated worker support and provide bi-annual summaries on business feedback about the impact of technology in hiring and workforce decisions.
SB 947, the “No Robo Bosses” Act, would bar employers from using Automated Decision Systems solely for disciplinary or termination purposes.
Effective October 2025, new regulations prohibit the use of automated systems to discriminate against applicants or employees.
In September 2025, regulations enforcing employer notices on the use of automated decision-making technologies were approved and will go into effect on January 1, 2027.

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