Labor
Employment: technological displacement: notice
California requires added disclosure when covered mass layoffs, relocations, or closures are substantially caused by AI or other automation.
Workers and public agencies will receive details about jobs displaced by technology, while the state will publish displacement data and study AI’s effects on hiring.
What the law does
- Requires Cal/WARN notices for technology-driven mass layoffs, relocations, and terminations to identify affected jobs and locations, automated job functions, and the type of technology involved.
- Requires these notices to state at the top, “This notice is for a technology displacement.”
- Requires the Employment Development Department to publish notice summaries online and quarterly statewide summaries of reported technology displacements.
- Requires the Employment Development Department to report to the Legislature by January 1, 2028, on AI’s effects on hiring, industries, occupations, and potential notice rules for technology-driven hiring cessations.
Who it affects
- Employers covered by Cal/WARN that carry out qualifying mass layoffs, relocations, or terminations substantially caused by AI or automation.
- Employees whose positions are displaced in qualifying actions.
- The Employment Development Department.
Context
The AI-hiring report requirement expires January 1, 2029.