California Requires Early, Detailed Notices for AI-Driven Layoffs
California’s SB 951 mandates earlier, detailed WARN notices for AI-driven layoffs starting 2027.
Why it matters: Employers and legal teams must update compliance processes for AI-triggered workforce reductions to avoid penalties and meet new transparency standards under California law.
- SB 951 signed by Gov. Gavin Newsom on Sept. 30, 2026, effective Jan. 1, 2027.
- Employers with 75+ employees must give 60 days’ notice before AI-related mass layoffs or relocations.
- Notices must state 'This notice is for a technology displacement' prominently.
- Notices must specify number, classification, location of affected workers, job functions automated, and type of AI causing displacement.
California Gov. Gavin Newsom signed into law Senate Bill 951 on September 30, 2026, expanding the California Worker Adjustment and Retraining Notification (Cal-WARN) Act to specifically address AI-related workforce reductions. The new requirements take effect January 1, 2027, and apply to employers operating a "covered establishment" with 75 or more employees within the last 12 months.
Under SB 951, employers must provide at least 60 days' written notice before initiating a mass layoff, relocation, or termination substantially caused by an AI system or automated technology. The Cal-WARN notice must state prominently at the top: "This notice is for a technology displacement."
Moreover, notices now must include detailed information about the layoffs attributed to AI, including the number of employees affected, their job classifications, work locations, and specific job functions automated. Employers also need to identify the category or type of AI or automation technology that substantially led to the displacement.
The California Employment Development Department (EDD) is tasked with publishing summaries of these technology displacement notices online and issuing quarterly statewide reports on reported AI-driven layoffs. By January 1, 2028, the EDD must submit a detailed report to the Legislature on AI’s impact on hiring practices, industries, and occupations at state and regional levels.
Gov. Newsom emphasized the law’s intent, stating, "AI should expand opportunity—not come at the expense of workers and families." This legislative update reflects California’s proactive approach to balancing workforce protections with the growing prevalence of AI-driven automation in the workplace.
By the numbers:
- 60 days — advance notice required for mass layoffs due to AI
- 75 employees — employer threshold for Cal-WARN applicability
- January 1, 2027 — effective date of SB 951
What's next: The EDD will begin publishing technology-displacement notice summaries in 2027 and submit its first AI impact report to the California Legislature by January 1, 2028.