The Labor and Workforce Development Agency, Employment Development Department, Governor's Office of Business and Economic Development, and Department of Finance are leading the effort alongside universities, labor groups, and industry partners. Under review are potential amendments to California's Worker Adjustment and Retraining Notification Act, severance policies for displaced workers, upskilling programs, collective bargaining frameworks for technological change, and mechanisms for workers to benefit from AI productivity gains. The state has set staggered deadlines for agency reports over the coming months, including a 90-day research review, with recommendations expected to inform 2027 legislative proposals. The Employment Development Department will also build an AI-impact dashboard using unemployment insurance data and provide recurring business feedback reports through 2027.
Newsom's office is positioning this as the nation's first comprehensive state response to AI-driven job displacement. Attorneys should monitor the agency reports and dashboard data as leading indicators of where California's AI labor policy will move. The order creates a direct pipeline to potential changes in layoff notice requirements, severance standards, and workforce development funding—changes that could affect how employers in California structure workforce reductions and manage the transition to AI-dependent operations.