Employment: technological displacement: notice.

SB 951

California Bills

20250SB__095193AMD INTRODUCED 2026-02-02 AMENDED_SENATE 2026-03-26 AMENDED_SENATE 2026-04-09 AMENDED_SENATE 2026-04-22 AMENDED_SENATE 2026-05-14 AMENDED_ASSEMBLY 2026-06-22 AMENDED_ASSEMBLY 2026-07-02 2025 SB AMD Introduced by Senator Reyes (Coauthors: Assembly Members Bauer-Kahan and Lowenthal) LEAD_AUTHOR SENATE Reyes COAUTHOR ASSEMBLY Bauer-Kahan COAUTHOR ASSEMBLY Lowenthal

An act to amend Sections 1400.5, 1401, 1403, and of, and to add

Section 1402.7 to, the Labor Code, relating to employment. employment Employment: technological displacement: notice. Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner (commissioner), within the Department of Industrial Relations. Existing law establishes the Employment Development Department (EDD), which is administered by the Director of Employment Development.

Under existing law, the Director of Employment Development is vested with specified duties, purposes, responsibilities, and jurisdiction related to job creation activity functions, among other things. Existing law, the California Worker Adjustment and Retraining Act (Cal/WARN Act), prohibits an employer from ordering a mass layoff, relocation, or termination at a covered establishment unless, 60 days before the order takes effect, the employer gives written notice of the order to the employees affected by the order and to the EDD and certain local officials.

Existing law makes an employer who fails to give specified notice regarding a mass layoff, relocation, or termination subject to a civil penalty of not more than $500 for each day of the employer’s violation. This bill would revise the Cal/WARN Act to also require an employer giving notice of a mass layoff, relocation, or termination caused in whole or in substantial part by an artificial intelligence (AI) system or other automated technology replacing or automating employment positions to include certain information in the notice, including the job functions performed by workers that will be automated by AI.

The bill would additionally require an employer to provide the EDD with a written technology hiring disruption notice that contains all of specified information about the employer’s use of AI or other automation when that employer executes a technological cessation in hiring, as defined.

The bill would require the EDD to post summaries of notices received pursuant to these provisions on its internet website as part of the existing notice requirements of the Cal/WARN Act, compile quarterly summaries regarding worker displacement due to AI and automation with the report including a link to the Cal/WARN Act notice report internet website, and submit the report to specified legislative committees.

The bill would make an employer who fails to give a written technology hiring disruption notice when it executes a technological cessation in hiring liable for a civil penalty of not more than $500 for each day of the employer’s violation. The bill would authorize the Labor Commissioner to enforce these notice requirements and would make various related, conforming changes to the Cal/WARN Act.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities and counties, including charter cities and charter counties. This bill would establish the California Worker Technological Displacement Act, which would require an employer, as defined, to provide at least a 60-day advanced written notice before any technological displacement affecting workers, as described. The bill would require an employer to provide that notice to affected workers, the EDD, and specified local entities.

The bill would also require an employer to provide a written technology hiring disruption notice to the EDD when it executes a technological cessation in hiring caused in whole by the adoption of artificial intelligence (AI) or other automating technology. The bill would impose various reporting requirements on the EDD.</xhtml:p><xhtml:p>For employers with more than workers, this bill would entitle workers affected by technological displacement to a right of first bid on other positions with the employer, except as specified.

The bill would prohibit an employer, during the 60-day period from when notice is provided to the worker, from discharging a worker affected by a technological displacement without reasonable and substantiated cause.</xhtml:p><xhtml:p>This bill would also require a local educational agency that provides layoff notices for classified and certificated staff or a community college district that provides layoff notices for academic and classified employees to provide the EDD with a written technology displacement or cessation in hiring notice when it executes a technological displacement or a technological cessation in hiring caused in whole by the adoption of AI or other automating technology, as specified.</xhtml:p><xhtml:p>This bill would make an employer that fails to give notice before ordering a technological displacement subject to certain penalties, including a $500 civil penalty for each day of the employer’s violation, except as provided.</xhtml:p><xhtml:p>This bill would establish the Technological Displacement Act Fund, require all civil penalties recovered by the commissioner to be deposited in the fund, and make all moneys in the fund available to the commissioner upon appropriation.

The bill would also authorize the commissioner and the EDD to adopt rules and regulations to effectuate these provisions. The bill would make its provisions severable.</xhtml:p>"?> MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 1400.5 of the Labor Code is amended to read: 1400.5. The

definitions set forth in this

section shall govern the construction and meaning of the terms used in this chapter: (a) “Artificial intelligence” or “AI” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments. (a)</xhtml:p>"?> (b) “Covered establishment” means any industrial or commercial facility or part thereof that employs, or has employed within the preceding months, 75 or more persons. (b)</xhtml:p>"?> (c) “Employer” means any person, as defined by

Section 18, who directly or indirectly owns and operates a covered establishment.

A parent corporation is an employer as to any covered establishment directly owned and operated by its corporate subsidiary. (c)</xhtml:p>"?> (d) “Layoff” means a separation from a position for lack of funds or lack of work. (d)</xhtml:p>"?> (e) “Mass layoff” means a layoff during any 30-day period of or more employees at a covered establishment. (e)</xhtml:p>"?> (f) “Relocation” means the removal of all or substantially all of the industrial or commercial operations in a covered establishment to a different location miles or more away. (f)</xhtml:p>"?> (g) “Termination” means the cessation or substantial cessation of industrial or commercial operations in a covered establishment. (g)</xhtml:p>"?> (h)

(1) This

chapter does not apply where the closing or layoff is the result of the completion of a particular project or undertaking of an employer subject to Wage Order 11, regulating the Broadcasting Industry, Wage Order 12, regulating the Motion Picture Industry, or Wage Order 16, regulating Certain On-Site Occupations in the Construction, Drilling, Logging and Mining Industries, of the Industrial Welfare Commission, and the employees were hired with the understanding that their employment was limited to the duration of that project or undertaking.

(2) This

chapter does not apply to employees who are employed in seasonal employment where the employees were hired with the understanding that their employment was seasonal and temporary. (h)</xhtml:p>"?> (i) “Employee” means a person employed by an employer for at least months of the months preceding the date on which notice is required.

SEC. 2.

Section of the Labor Code is amended to read: 1401. (

a) An employer may not order a mass layoff, relocation, or termination at a covered establishment unless, 60 days before the order takes effect, the employer gives written notice of the order to the following:

(1) The employees of the covered establishment affected by the order.

(2) The Employment Development Department, the local workforce development board, and the chief elected official of each city and county government within which the termination, relocation, or mass layoff occurs. (

b) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in its notice the elements required by the federal Worker Adjustment and Retraining Notification Act (29 U.S.C.

Sec. 2101 et seq.). (

c) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in the notice whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, the employer plans to coordinate services through a different entity, or the employer does not plan to coordinate services with any entity.

(1) Regardless of whether the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall include in the notice a functioning email and telephone number of the board and the following description of the rapid response activities offered by the local workforce development board in accordance with

Chapter 32 (commencing with

Section 3102) of Title of the United States Code: “Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career.”

(2) If the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall arrange services within days from the date of the notice.

(3) An employer required to give notice of a mass layoff, relocation, or termination caused in whole or in substantial part by an AI system or other automated technology replacing or automating employment positions shall additionally include in the notice all of the following information: (

A) The number, classification or occupation, and work location of layoffs that are substantially due to the replacement or automation by AI. (

B) The job functions performed by those workers that will be automated by AI. (

C) The specific category or type of AI system or other automating technology that substantially resulted in technological displacement, including the entity or entities that developed, sold, or leased the product. (

d) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in the notice a description of the statewide food assistance program known as CalFresh (Chapter 10 (commencing with

Section 18900) of Part of Division of the Welfare and Institutions Code), the CalFresh benefits helpline, and a link to the CalFresh internet website. (

e) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in the notice a functioning email and telephone number of the employer for contact. (

f) Notwithstanding the requirements of subdivision (a), an employer is not required to provide notice if a mass layoff, relocation, or termination is necessitated by a physical calamity or act of war.

SEC.

Section 1402.7 is added to the Labor Code , to read: 1402.7. (

a) For purposes of this section, the following

definitions apply:

(1) Notwithstanding

Section 1400.5, “employer” means any person, as defined by

Section 18, who directly or indirectly owns and operates an establishment. A parent corporation is an employer as to any establishment directly owned and operated by its corporate subsidiary. An “employer” includes, but is not limited to, any of the following: (

A) The state, including its legislative, judicial, and executive branches. (

B) Any city, county, or city and county, including any charter city, charter county, charter city and county, and other political subdivisions of the state. (

C) Special districts. (

D) Local educational agencies and community college districts. (

E) Any authority, commission, board, agency, or instrumentality of any entity specified in subparagraphs (

A) to (C), inclusive. (

F) The University of California, the California State University, and community college districts. (2) “Technological cessation in hiring” means the permanent ending of hiring or contracting for a particular occupation or position, caused in whole or in substantial part by the employer’s use of AI or other automation, regardless of either of the following: (

A) Whether any workers in that occupation or position remain employed or under contract. (

B) Whether the cessation results in an overall reduction in occupations or positions. (3) “Worker” means any natural person who is an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in any workplace, for at least months of the months preceding the date on which notice is required under this article. “Worker” includes, but is not limited to, full-time and part-time workers but does not include a seasonally employed individual who was hired with the understanding that their employment is seasonal and temporary, a volunteer, or an intern. (

b) An employer shall provide a written technology hiring disruption notice containing all of the following information to the Employment Development Department when it executes a technological cessation in hiring:

(1) The name and address of the employment site and the name, email, and telephone number of a company official or public agency contact person.

(2) A statement indicating whether the planned action is permanent or temporary.

(3) The number of positions of the employer that were occupied at any point during the prior quarter for which the employer has decided not to fill because of a technological cessation in hiring.

(4) The classification or occupation, and work location of positions that will no longer be filled by workers due to the replacement or automation by AI.

(5) The job functions performed in these positions.

(6) The specific category or type of AI system or other automating technology that resulted in the technological cessation of hiring, including the entity or entities that developed, sold, or leased the product.

(7) A statement if the cessation resulted in hiring or creating other employment positions in the company and the number and occupation of those positions. (

c) The Employment Development Department shall do all of the following:

(1) Post summaries of the notices received pursuant to this

section on their internet website as part of the existing notice requirements of the Cal/WARN Act pursuant to this chapter.

(2) Compile a quarterly

summary using notices received pursuant to this

section to present a statewide

summary of worker displacement due to AI and automation. The report shall include a link to the Cal/WARN Act notice report internet website.

(3) Submit the report to the labor and budget committees of the Assembly and Senate. The report submitted to the Legislature pursuant to this paragraph shall be submitted pursuant to

Section of the Government Code.

SEC. 4.

Section of the Labor Code is amended to read: 1403. An employer who fails to give notice as required by paragraph (2) of subdivision (

a) of

Section or subdivision (

b) of

Section 1402.7 is subject to a civil penalty of not more than five hundred dollars ($500) for each day of the employer’s violation. The employer is not subject to a civil penalty under this section, however, if the employer pays to all applicable employees the amounts for which the employer is liable under

Section within three weeks from the date the employer orders the mass layoff, relocation, or termination.

SEC. 5.

Section of the Labor Code is amended to read: 1406. (

a) In any investigation or proceeding under this chapter, the Labor Commissioner has, in addition to all other powers granted by law, the authority to examine the books and records of an employer. (

b) The Labor Commissioner may enforce the notice requirements in

Section 1401, subdivision (

b) of

Section 1402.7, and subdivision (

a) of

Section 1410, including investigating an alleged violation and ordering appropriate temporary relief to mitigate the violation pending the completion of a full investigation or hearing, through the procedures set forth in

Section 98.3 or 1197.1, including by issuance of a citation against an employer who violates this chapter. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the commissioner shall be the same as those set forth in

Section 1197.1, as appropriate.

SEC. 6. The Legislature finds and declares that

Section of this act adding

Section 1402.7 to the Labor Code address a matter of statewide concern rather than a municipal affair as that term is used in

Section of

Article XI of the California Constitution. Therefore,

Section of this act adding

Section 1402.7 applies to all cities and counties, including charter cities and charter counties. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:LAB:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D)" xlink:label="fractionType: LAW_SPREAD||commencingWith: 1414" xlink:type="locator">Article 3 (commencing with

Section 1414) is added to

Chapter of Part of Division of the <caml:DocName>Labor Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawHeading id="id_249D0522-49E4-4650-A0F8-29AB646C7019" type="ARTICLE"><caml:Num>3.</caml:Num><caml:LawHeadingVersion id="id_42340202-8F18-46BA-A786-A00C64128B48"><caml:LawHeadingText>California Worker Technological Displacement Act</caml:LawHeadingText></caml:LawHeadingVersion><caml:LawSection id="id_1937BDDB-3132-4DE6-A1D9-7AC212110A4F"><caml:Num>1414.</caml:Num><caml:LawSectionVersion id="id_EE2F50BB-71A4-4B31-8511-06DB315BB176"><caml:Content><xhtml:p>This

article shall be known, and may be cited, as the California Worker Technological Displacement Act.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_263E8548-F751-4AC3-8D0F-C47AC1A0A036"><caml:Num>1414.1.</caml:Num><caml:LawSectionVersion id="id_2BFDAFE3-6B5E-40F4-81FB-72A4B6B723E0"><caml:Content><xhtml:p>For purposes of this article, the following

definitions apply:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>“Artificial intelligence” or “AI” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>“Employer” means any person, as defined by

Section 18, who directly or indirectly owns and operates a covered establishment. A parent corporation is an employer as to any covered establishment directly owned and operated by its corporate subsidiary.

An “employer” includes, but is not limited to, any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The state, including its legislative, judicial, and executive branches.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Any city, county, or city and county, including any charter city, charter county, charter city and county, and other political subdivisions of the state.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Special districts.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Local educational agencies and community college districts that do not provide layoff notices pursuant to Sections 45117, 44955, 87740, and of the Education Code for academic, classified, or certificated staff.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>Any authority, commission, board, agency, or instrumentality of any entity specified in paragraphs (1) to (3), inclusive.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The University of California, the California State University, and community college districts.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>“Technological displacement” means a layoff during any 30-day period of or more workers caused in whole by an AI system or other automated technology replacing or automating employment positions.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>“Technological cessation in hiring” means the end of hiring permanently for an occupation or position that is caused in whole by the use of AI or other automation. “Technological cessation in hiring” does not mean an overall reduction in employment positions.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>“Worker” means any natural person who is an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in any workplace, for at least months of the months preceding the date on which notice is required under this article. “Worker” includes, but is not limited to, full-time and part-time workers but does not include a seasonally employed individual who was hired with the understanding that their employment is seasonal and temporary, a volunteer, or an intern.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_997AA48C-96EE-4911-AA91-2564B46C03C7"><caml:Num>1414.2.</caml:Num><caml:LawSectionVersion id="id_A88714F4-16F3-4DD1-B51D-64AE9D4BE146"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>An employer shall provide at least a 60-day advanced written notice before any technological displacement as defined in subdivision (

c) of

Section 1414.1.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The notice shall be provided to both of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The workers of the employer affected by the technological disruption.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The Employment Development Department, the local workforce investment board, and the city council members and county board of supervisors of each city and county in the state within which the technological displacement occurs.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The notice shall contain all of the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The name and address of the employment site and the name, email, and telephone number of a company official or public agency contact person.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A statement indicating whether the planned action is permanent or temporary.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The expected date of the first separation and the anticipated

schedule for subsequent separations.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The number, classification or occupation, and work location of layoffs that are substantially due to the replacement or automation by AI.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The job functions performed by those workers that will be automated by AI.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The specific category or type of AI system or other automating technology that substantially resulted in technological displacement, including the entity or entities that developed, sold, or leased the product.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>If retraining is available to current workers to transition from eliminated occupations to new ones at the company.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>Whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, a different entity, or the employer does not plan to coordinate services with any entity.</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Regardless of whether the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall include in the notice a functioning email and telephone number of the board and the following description of the rapid response activities offered by the local workforce development board in accordance with

Chapter 32 (commencing with

Section 3101) of Title of the United States Code:</xhtml:p><xhtml:br/><xhtml:p>“Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more.

You can also learn about training programs to help start a new career.”</xhtml:p><xhtml:br/><xhtml:p>(B)<xhtml:span class="EnSpace"/>If the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall arrange services within days from the date of the notice.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>For employers with more than workers, each worker affected by a technological displacement shall be entitled to the right of first bid on other positions with the employer.

This subdivision shall not apply to the extent that it would conflict with the provisions of a collective bargaining agreement.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>An employer shall not discharge a worker affected by a technological displacement without reasonable and substantiated cause during the 60-day period from when the notice in subdivision (

c) is provided to the worker.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_78619B09-DCCC-4A6B-8F5A-746F1AF4F15B"><caml:Num>1414.3.</caml:Num><caml:LawSectionVersion id="id_A91C1DBE-792B-49D4-975E-0A64C32DE61B"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>An employer shall provide a written technology hiring disruption notice when it executes a technological cessation in hiring caused in whole by the adoption of AI or other automating technology.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The notice shall be given to the Employment Development Department.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The notice shall include all of the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The name and address of the employment site and the name, email, and telephone number of a company official or public agency contact person.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A statement indicating whether the planned action is permanent or temporary.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The number of positions of the employer that were occupied at any point during the prior quarter for which the employer has decided not to fill because of a technological cessation in hiring.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The classification or occupation, and work location of positions that will no longer be filled by humans due to the replacement or automation by AI.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The job functions performed in these positions.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The specific category or type of AI system or other automating technology that resulted in the technological cessation of hiring, including the entity or entities that developed, sold, or leased the product.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>A statement if the cessation resulted in hiring or creation of other employment positions in the company and the number and occupation of those positions.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_8FB21AD6-8652-415A-B116-0D7E9B8389AF"><caml:Num>1414.4.</caml:Num><caml:LawSectionVersion id="id_B365E68E-14CE-4BBC-AC8B-B8B57845224B"><caml:Content><xhtml:p>If a workforce action triggers notice obligations under both this

article and Sections to 1413, inclusive, a covered employer may include the notice pursuant to paragraphs (4) to (8), inclusive, of subdivision (

c) of

Section 1414.2 and paragraphs (2) to (7), inclusive, of subdivision (

c) of

Section 1414.3 as part of the notice requirements pursuant to Sections to 1413, inclusive. In those circumstances, the covered employer shall not be required to separately comply with Sections 1414.2 and 1414.3.

Compliance with those provisions shall constitute full and complete satisfaction of any obligation the covered employer would otherwise have under Sections 1414.2 and 1414.3 and shall not constitute a violation.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_A0E105A0-D60D-4EEF-94F9-E8F144094E53"><caml:Num>1414.5.</caml:Num><caml:LawSectionVersion id="id_81649FBE-1001-4DF6-9AEB-21B50F6A47B4"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>A local educational agency that provides layoff notices pursuant to Sections and of the Education Code for classified and certificated staff, or a community college district that provides layoff notices pursuant to Sections and of the Education Code for academic and classified employees, shall provide the Employment Development Department with a written technology displacement or cessation in hiring notice when it executes a technological displacement or a technological cessation in hiring caused in whole by the adoption of AI or other automating technology.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The notice shall be provided on an annual basis and shall include all of the information required pursuant to paragraph (1) to (8) of subdivision (

c) of

Section 1414.2.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_E911DA21-0465-4BD3-A5E3-D73227BD7365"><caml:Num>1414.6.</caml:Num><caml:LawSectionVersion id="id_0804E3B4-91D4-4DCC-B423-DF9F58D974D6"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Employment Development Department shall post summaries of the notices received pursuant to Sections 1414.2 and 1414.3 on their internet website as part of the existing notice requirements of the Cal/WARN Act pursuant to Sections to 1413, inclusive, and shall compile a quarterly

summary using those notices to present a statewide

summary of worker displacement due to AI and automation. The report shall include a link to the Cal/WARN Act notice report internet website.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The Employment Development Department shall submit the report to the labor and budget committees of the Assembly and Senate. The report submitted to the Legislature pursuant to this subdivision shall be submitted pursuant to

Section of the Government Code.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_1E1B5C9A-DB88-4ACF-B0A5-B412A9843689"><caml:Num>1414.7.</caml:Num><caml:LawSectionVersion id="id_21166BB8-35BB-4BFD-9875-68A3ED84C6D2"><caml:Content><xhtml:p>An employer that fails to give notice as required by paragraph (1) of subdivision (

b) of

Section 1414.2 before ordering a technological displacement shall be subject to the enforcement provisions pursuant to Sections to 1407, inclusive.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_1BAB37FC-655D-49B0-902E-F9DC17114995"><caml:Num>1414.8.</caml:Num><caml:LawSectionVersion id="id_5944897E-6264-493D-9BB2-D9305B5B87EB"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>There is hereby established the Technological Displacement Act Fund within the State Treasury.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Notwithstanding any law, all civil penalties recovered by the Labor Commissioner pursuant to this

article shall be deposited in the fund.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>All moneys in the fund shall be available to the commissioner, upon appropriation by the Legislature, for purposes of enforcing this article.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_B2F31821-A071-4320-B26E-7E508FF0B7DE"><caml:Num>1414.9.</caml:Num><caml:LawSectionVersion id="id_EEEC058B-BE54-48DA-B4D3-B246719A4A33"><caml:Content><xhtml:p>The provisions of this

article do not supersede greater protections that may be provided by a collective bargaining agreement.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_1CAFF26E-10A8-4F43-ACFE-67AA21640E6D"><caml:Num>1414.10.</caml:Num><caml:LawSectionVersion id="id_28E0F40F-868D-4C3A-BA22-9677B2D63419"><caml:Content><xhtml:p>The Labor Commissioner and the Employment Development Department may adopt rules and regulations as necessary and proper to effectuate the purposes of this article, in accordance with

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_F79271E9-C2C5-4265-B0DD-614A2CD59D9A"><caml:Num>1414.11.</caml:Num><caml:LawSectionVersion id="id_410C6686-1016-45C0-832A-EDDEE32F9D27"><caml:Content><xhtml:p>The provisions of this

article are severable. If any provision of this

article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:LawHeading></caml:Fragment></caml:BillSection>"?>

Document details

CollectionCalifornia Bills
CitationSB 951
Date2026-07-02
Typebill
Languageen
SourceCA_BILL
Identifier20250SB95193AMD

Employment: technological displacement: notice.

SB 951

California Bills

Employment: technological displacement: notice.

SB 951

California Bills

20250SB__095193AMD INTRODUCED 2026-02-02 AMENDED_SENATE 2026-03-26 AMENDED_SENATE 2026-04-09 AMENDED_SENATE 2026-04-22 AMENDED_SENATE 2026-05-14 AMENDED_ASSEMBLY 2026-06-22 AMENDED_ASSEMBLY 2026-07-02 2025 SB AMD Introduced by Senator Reyes (Coauthors: Assembly Members Bauer-Kahan and Lowenthal) LEAD_AUTHOR SENATE Reyes COAUTHOR ASSEMBLY Bauer-Kahan COAUTHOR ASSEMBLY Lowenthal

An act to amend Sections 1400.5, 1401, 1403, and of, and to add

Section 1402.7 to, the Labor Code, relating to employment. employment Employment: technological displacement: notice. Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner (commissioner), within the Department of Industrial Relations. Existing law establishes the Employment Development Department (EDD), which is administered by the Director of Employment Development.

Under existing law, the Director of Employment Development is vested with specified duties, purposes, responsibilities, and jurisdiction related to job creation activity functions, among other things. Existing law, the California Worker Adjustment and Retraining Act (Cal/WARN Act), prohibits an employer from ordering a mass layoff, relocation, or termination at a covered establishment unless, 60 days before the order takes effect, the employer gives written notice of the order to the employees affected by the order and to the EDD and certain local officials.

Existing law makes an employer who fails to give specified notice regarding a mass layoff, relocation, or termination subject to a civil penalty of not more than $500 for each day of the employer’s violation. This bill would revise the Cal/WARN Act to also require an employer giving notice of a mass layoff, relocation, or termination caused in whole or in substantial part by an artificial intelligence (AI) system or other automated technology replacing or automating employment positions to include certain information in the notice, including the job functions performed by workers that will be automated by AI.

The bill would additionally require an employer to provide the EDD with a written technology hiring disruption notice that contains all of specified information about the employer’s use of AI or other automation when that employer executes a technological cessation in hiring, as defined.

The bill would require the EDD to post summaries of notices received pursuant to these provisions on its internet website as part of the existing notice requirements of the Cal/WARN Act, compile quarterly summaries regarding worker displacement due to AI and automation with the report including a link to the Cal/WARN Act notice report internet website, and submit the report to specified legislative committees.

The bill would make an employer who fails to give a written technology hiring disruption notice when it executes a technological cessation in hiring liable for a civil penalty of not more than $500 for each day of the employer’s violation. The bill would authorize the Labor Commissioner to enforce these notice requirements and would make various related, conforming changes to the Cal/WARN Act.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities and counties, including charter cities and charter counties. This bill would establish the California Worker Technological Displacement Act, which would require an employer, as defined, to provide at least a 60-day advanced written notice before any technological displacement affecting workers, as described. The bill would require an employer to provide that notice to affected workers, the EDD, and specified local entities.

The bill would also require an employer to provide a written technology hiring disruption notice to the EDD when it executes a technological cessation in hiring caused in whole by the adoption of artificial intelligence (AI) or other automating technology. The bill would impose various reporting requirements on the EDD.</xhtml:p><xhtml:p>For employers with more than workers, this bill would entitle workers affected by technological displacement to a right of first bid on other positions with the employer, except as specified.

The bill would prohibit an employer, during the 60-day period from when notice is provided to the worker, from discharging a worker affected by a technological displacement without reasonable and substantiated cause.</xhtml:p><xhtml:p>This bill would also require a local educational agency that provides layoff notices for classified and certificated staff or a community college district that provides layoff notices for academic and classified employees to provide the EDD with a written technology displacement or cessation in hiring notice when it executes a technological displacement or a technological cessation in hiring caused in whole by the adoption of AI or other automating technology, as specified.</xhtml:p><xhtml:p>This bill would make an employer that fails to give notice before ordering a technological displacement subject to certain penalties, including a $500 civil penalty for each day of the employer’s violation, except as provided.</xhtml:p><xhtml:p>This bill would establish the Technological Displacement Act Fund, require all civil penalties recovered by the commissioner to be deposited in the fund, and make all moneys in the fund available to the commissioner upon appropriation.

The bill would also authorize the commissioner and the EDD to adopt rules and regulations to effectuate these provisions. The bill would make its provisions severable.</xhtml:p>"?> MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 1400.5 of the Labor Code is amended to read: 1400.5. The

definitions set forth in this

section shall govern the construction and meaning of the terms used in this chapter: (a) “Artificial intelligence” or “AI” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments. (a)</xhtml:p>"?> (b) “Covered establishment” means any industrial or commercial facility or part thereof that employs, or has employed within the preceding months, 75 or more persons. (b)</xhtml:p>"?> (c) “Employer” means any person, as defined by

Section 18, who directly or indirectly owns and operates a covered establishment.

A parent corporation is an employer as to any covered establishment directly owned and operated by its corporate subsidiary. (c)</xhtml:p>"?> (d) “Layoff” means a separation from a position for lack of funds or lack of work. (d)</xhtml:p>"?> (e) “Mass layoff” means a layoff during any 30-day period of or more employees at a covered establishment. (e)</xhtml:p>"?> (f) “Relocation” means the removal of all or substantially all of the industrial or commercial operations in a covered establishment to a different location miles or more away. (f)</xhtml:p>"?> (g) “Termination” means the cessation or substantial cessation of industrial or commercial operations in a covered establishment. (g)</xhtml:p>"?> (h)

(1) This

chapter does not apply where the closing or layoff is the result of the completion of a particular project or undertaking of an employer subject to Wage Order 11, regulating the Broadcasting Industry, Wage Order 12, regulating the Motion Picture Industry, or Wage Order 16, regulating Certain On-Site Occupations in the Construction, Drilling, Logging and Mining Industries, of the Industrial Welfare Commission, and the employees were hired with the understanding that their employment was limited to the duration of that project or undertaking.

(2) This

chapter does not apply to employees who are employed in seasonal employment where the employees were hired with the understanding that their employment was seasonal and temporary. (h)</xhtml:p>"?> (i) “Employee” means a person employed by an employer for at least months of the months preceding the date on which notice is required.

SEC. 2.

Section of the Labor Code is amended to read: 1401. (

a) An employer may not order a mass layoff, relocation, or termination at a covered establishment unless, 60 days before the order takes effect, the employer gives written notice of the order to the following:

(1) The employees of the covered establishment affected by the order.

(2) The Employment Development Department, the local workforce development board, and the chief elected official of each city and county government within which the termination, relocation, or mass layoff occurs. (

b) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in its notice the elements required by the federal Worker Adjustment and Retraining Notification Act (29 U.S.C.

Sec. 2101 et seq.). (

c) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in the notice whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, the employer plans to coordinate services through a different entity, or the employer does not plan to coordinate services with any entity.

(1) Regardless of whether the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall include in the notice a functioning email and telephone number of the board and the following description of the rapid response activities offered by the local workforce development board in accordance with

Chapter 32 (commencing with

Section 3102) of Title of the United States Code: “Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career.”

(2) If the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall arrange services within days from the date of the notice.

(3) An employer required to give notice of a mass layoff, relocation, or termination caused in whole or in substantial part by an AI system or other automated technology replacing or automating employment positions shall additionally include in the notice all of the following information: (

A) The number, classification or occupation, and work location of layoffs that are substantially due to the replacement or automation by AI. (

B) The job functions performed by those workers that will be automated by AI. (

C) The specific category or type of AI system or other automating technology that substantially resulted in technological displacement, including the entity or entities that developed, sold, or leased the product. (

d) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in the notice a description of the statewide food assistance program known as CalFresh (Chapter 10 (commencing with

Section 18900) of Part of Division of the Welfare and Institutions Code), the CalFresh benefits helpline, and a link to the CalFresh internet website. (

e) An employer required to give notice of any mass layoff, relocation, or termination under this

chapter shall include in the notice a functioning email and telephone number of the employer for contact. (

f) Notwithstanding the requirements of subdivision (a), an employer is not required to provide notice if a mass layoff, relocation, or termination is necessitated by a physical calamity or act of war.

SEC.

Section 1402.7 is added to the Labor Code , to read: 1402.7. (

a) For purposes of this section, the following

definitions apply:

(1) Notwithstanding

Section 1400.5, “employer” means any person, as defined by

Section 18, who directly or indirectly owns and operates an establishment. A parent corporation is an employer as to any establishment directly owned and operated by its corporate subsidiary. An “employer” includes, but is not limited to, any of the following: (

A) The state, including its legislative, judicial, and executive branches. (

B) Any city, county, or city and county, including any charter city, charter county, charter city and county, and other political subdivisions of the state. (

C) Special districts. (

D) Local educational agencies and community college districts. (

E) Any authority, commission, board, agency, or instrumentality of any entity specified in subparagraphs (

A) to (C), inclusive. (

F) The University of California, the California State University, and community college districts. (2) “Technological cessation in hiring” means the permanent ending of hiring or contracting for a particular occupation or position, caused in whole or in substantial part by the employer’s use of AI or other automation, regardless of either of the following: (

A) Whether any workers in that occupation or position remain employed or under contract. (

B) Whether the cessation results in an overall reduction in occupations or positions. (3) “Worker” means any natural person who is an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in any workplace, for at least months of the months preceding the date on which notice is required under this article. “Worker” includes, but is not limited to, full-time and part-time workers but does not include a seasonally employed individual who was hired with the understanding that their employment is seasonal and temporary, a volunteer, or an intern. (

b) An employer shall provide a written technology hiring disruption notice containing all of the following information to the Employment Development Department when it executes a technological cessation in hiring:

(1) The name and address of the employment site and the name, email, and telephone number of a company official or public agency contact person.

(2) A statement indicating whether the planned action is permanent or temporary.

(3) The number of positions of the employer that were occupied at any point during the prior quarter for which the employer has decided not to fill because of a technological cessation in hiring.

(4) The classification or occupation, and work location of positions that will no longer be filled by workers due to the replacement or automation by AI.

(5) The job functions performed in these positions.

(6) The specific category or type of AI system or other automating technology that resulted in the technological cessation of hiring, including the entity or entities that developed, sold, or leased the product.

(7) A statement if the cessation resulted in hiring or creating other employment positions in the company and the number and occupation of those positions. (

c) The Employment Development Department shall do all of the following:

(1) Post summaries of the notices received pursuant to this

section on their internet website as part of the existing notice requirements of the Cal/WARN Act pursuant to this chapter.

(2) Compile a quarterly

summary using notices received pursuant to this

section to present a statewide

summary of worker displacement due to AI and automation. The report shall include a link to the Cal/WARN Act notice report internet website.

(3) Submit the report to the labor and budget committees of the Assembly and Senate. The report submitted to the Legislature pursuant to this paragraph shall be submitted pursuant to

Section of the Government Code.

SEC. 4.

Section of the Labor Code is amended to read: 1403. An employer who fails to give notice as required by paragraph (2) of subdivision (

a) of

Section or subdivision (

b) of

Section 1402.7 is subject to a civil penalty of not more than five hundred dollars ($500) for each day of the employer’s violation. The employer is not subject to a civil penalty under this section, however, if the employer pays to all applicable employees the amounts for which the employer is liable under

Section within three weeks from the date the employer orders the mass layoff, relocation, or termination.

SEC. 5.

Section of the Labor Code is amended to read: 1406. (

a) In any investigation or proceeding under this chapter, the Labor Commissioner has, in addition to all other powers granted by law, the authority to examine the books and records of an employer. (

b) The Labor Commissioner may enforce the notice requirements in

Section 1401, subdivision (

b) of

Section 1402.7, and subdivision (

a) of

Section 1410, including investigating an alleged violation and ordering appropriate temporary relief to mitigate the violation pending the completion of a full investigation or hearing, through the procedures set forth in

Section 98.3 or 1197.1, including by issuance of a citation against an employer who violates this chapter. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the commissioner shall be the same as those set forth in

Section 1197.1, as appropriate.

SEC. 6. The Legislature finds and declares that

Section of this act adding

Section 1402.7 to the Labor Code address a matter of statewide concern rather than a municipal affair as that term is used in

Section of

Article XI of the California Constitution. Therefore,

Section of this act adding

Section 1402.7 applies to all cities and counties, including charter cities and charter counties. <caml:Num>SECTION 1.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:LAB:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D)" xlink:label="fractionType: LAW_SPREAD||commencingWith: 1414" xlink:type="locator">Article 3 (commencing with

Section 1414) is added to

Chapter of Part of Division of the <caml:DocName>Labor Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawHeading id="id_249D0522-49E4-4650-A0F8-29AB646C7019" type="ARTICLE"><caml:Num>3.</caml:Num><caml:LawHeadingVersion id="id_42340202-8F18-46BA-A786-A00C64128B48"><caml:LawHeadingText>California Worker Technological Displacement Act</caml:LawHeadingText></caml:LawHeadingVersion><caml:LawSection id="id_1937BDDB-3132-4DE6-A1D9-7AC212110A4F"><caml:Num>1414.</caml:Num><caml:LawSectionVersion id="id_EE2F50BB-71A4-4B31-8511-06DB315BB176"><caml:Content><xhtml:p>This

article shall be known, and may be cited, as the California Worker Technological Displacement Act.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_263E8548-F751-4AC3-8D0F-C47AC1A0A036"><caml:Num>1414.1.</caml:Num><caml:LawSectionVersion id="id_2BFDAFE3-6B5E-40F4-81FB-72A4B6B723E0"><caml:Content><xhtml:p>For purposes of this article, the following

definitions apply:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>“Artificial intelligence” or “AI” means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>“Employer” means any person, as defined by

Section 18, who directly or indirectly owns and operates a covered establishment. A parent corporation is an employer as to any covered establishment directly owned and operated by its corporate subsidiary.

An “employer” includes, but is not limited to, any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The state, including its legislative, judicial, and executive branches.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Any city, county, or city and county, including any charter city, charter county, charter city and county, and other political subdivisions of the state.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Special districts.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Local educational agencies and community college districts that do not provide layoff notices pursuant to Sections 45117, 44955, 87740, and of the Education Code for academic, classified, or certificated staff.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>Any authority, commission, board, agency, or instrumentality of any entity specified in paragraphs (1) to (3), inclusive.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The University of California, the California State University, and community college districts.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>“Technological displacement” means a layoff during any 30-day period of or more workers caused in whole by an AI system or other automated technology replacing or automating employment positions.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>“Technological cessation in hiring” means the end of hiring permanently for an occupation or position that is caused in whole by the use of AI or other automation. “Technological cessation in hiring” does not mean an overall reduction in employment positions.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>“Worker” means any natural person who is an employee of, or an independent contractor providing service to, or through, a business or a state or local governmental entity in any workplace, for at least months of the months preceding the date on which notice is required under this article. “Worker” includes, but is not limited to, full-time and part-time workers but does not include a seasonally employed individual who was hired with the understanding that their employment is seasonal and temporary, a volunteer, or an intern.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_997AA48C-96EE-4911-AA91-2564B46C03C7"><caml:Num>1414.2.</caml:Num><caml:LawSectionVersion id="id_A88714F4-16F3-4DD1-B51D-64AE9D4BE146"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>An employer shall provide at least a 60-day advanced written notice before any technological displacement as defined in subdivision (

c) of

Section 1414.1.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The notice shall be provided to both of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The workers of the employer affected by the technological disruption.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The Employment Development Department, the local workforce investment board, and the city council members and county board of supervisors of each city and county in the state within which the technological displacement occurs.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The notice shall contain all of the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The name and address of the employment site and the name, email, and telephone number of a company official or public agency contact person.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A statement indicating whether the planned action is permanent or temporary.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The expected date of the first separation and the anticipated

schedule for subsequent separations.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The number, classification or occupation, and work location of layoffs that are substantially due to the replacement or automation by AI.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The job functions performed by those workers that will be automated by AI.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The specific category or type of AI system or other automating technology that substantially resulted in technological displacement, including the entity or entities that developed, sold, or leased the product.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>If retraining is available to current workers to transition from eliminated occupations to new ones at the company.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>Whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, a different entity, or the employer does not plan to coordinate services with any entity.</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Regardless of whether the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall include in the notice a functioning email and telephone number of the board and the following description of the rapid response activities offered by the local workforce development board in accordance with

Chapter 32 (commencing with

Section 3101) of Title of the United States Code:</xhtml:p><xhtml:br/><xhtml:p>“Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more.

You can also learn about training programs to help start a new career.”</xhtml:p><xhtml:br/><xhtml:p>(B)<xhtml:span class="EnSpace"/>If the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall arrange services within days from the date of the notice.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>For employers with more than workers, each worker affected by a technological displacement shall be entitled to the right of first bid on other positions with the employer.

This subdivision shall not apply to the extent that it would conflict with the provisions of a collective bargaining agreement.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>An employer shall not discharge a worker affected by a technological displacement without reasonable and substantiated cause during the 60-day period from when the notice in subdivision (

c) is provided to the worker.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_78619B09-DCCC-4A6B-8F5A-746F1AF4F15B"><caml:Num>1414.3.</caml:Num><caml:LawSectionVersion id="id_A91C1DBE-792B-49D4-975E-0A64C32DE61B"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>An employer shall provide a written technology hiring disruption notice when it executes a technological cessation in hiring caused in whole by the adoption of AI or other automating technology.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The notice shall be given to the Employment Development Department.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The notice shall include all of the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The name and address of the employment site and the name, email, and telephone number of a company official or public agency contact person.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A statement indicating whether the planned action is permanent or temporary.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The number of positions of the employer that were occupied at any point during the prior quarter for which the employer has decided not to fill because of a technological cessation in hiring.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>The classification or occupation, and work location of positions that will no longer be filled by humans due to the replacement or automation by AI.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The job functions performed in these positions.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The specific category or type of AI system or other automating technology that resulted in the technological cessation of hiring, including the entity or entities that developed, sold, or leased the product.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>A statement if the cessation resulted in hiring or creation of other employment positions in the company and the number and occupation of those positions.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_8FB21AD6-8652-415A-B116-0D7E9B8389AF"><caml:Num>1414.4.</caml:Num><caml:LawSectionVersion id="id_B365E68E-14CE-4BBC-AC8B-B8B57845224B"><caml:Content><xhtml:p>If a workforce action triggers notice obligations under both this

article and Sections to 1413, inclusive, a covered employer may include the notice pursuant to paragraphs (4) to (8), inclusive, of subdivision (

c) of

Section 1414.2 and paragraphs (2) to (7), inclusive, of subdivision (

c) of

Section 1414.3 as part of the notice requirements pursuant to Sections to 1413, inclusive. In those circumstances, the covered employer shall not be required to separately comply with Sections 1414.2 and 1414.3.

Compliance with those provisions shall constitute full and complete satisfaction of any obligation the covered employer would otherwise have under Sections 1414.2 and 1414.3 and shall not constitute a violation.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_A0E105A0-D60D-4EEF-94F9-E8F144094E53"><caml:Num>1414.5.</caml:Num><caml:LawSectionVersion id="id_81649FBE-1001-4DF6-9AEB-21B50F6A47B4"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>A local educational agency that provides layoff notices pursuant to Sections and of the Education Code for classified and certificated staff, or a community college district that provides layoff notices pursuant to Sections and of the Education Code for academic and classified employees, shall provide the Employment Development Department with a written technology displacement or cessation in hiring notice when it executes a technological displacement or a technological cessation in hiring caused in whole by the adoption of AI or other automating technology.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The notice shall be provided on an annual basis and shall include all of the information required pursuant to paragraph (1) to (8) of subdivision (

c) of

Section 1414.2.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_E911DA21-0465-4BD3-A5E3-D73227BD7365"><caml:Num>1414.6.</caml:Num><caml:LawSectionVersion id="id_0804E3B4-91D4-4DCC-B423-DF9F58D974D6"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Employment Development Department shall post summaries of the notices received pursuant to Sections 1414.2 and 1414.3 on their internet website as part of the existing notice requirements of the Cal/WARN Act pursuant to Sections to 1413, inclusive, and shall compile a quarterly

summary using those notices to present a statewide

summary of worker displacement due to AI and automation. The report shall include a link to the Cal/WARN Act notice report internet website.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>The Employment Development Department shall submit the report to the labor and budget committees of the Assembly and Senate. The report submitted to the Legislature pursuant to this subdivision shall be submitted pursuant to

Section of the Government Code.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_1E1B5C9A-DB88-4ACF-B0A5-B412A9843689"><caml:Num>1414.7.</caml:Num><caml:LawSectionVersion id="id_21166BB8-35BB-4BFD-9875-68A3ED84C6D2"><caml:Content><xhtml:p>An employer that fails to give notice as required by paragraph (1) of subdivision (

b) of

Section 1414.2 before ordering a technological displacement shall be subject to the enforcement provisions pursuant to Sections to 1407, inclusive.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_1BAB37FC-655D-49B0-902E-F9DC17114995"><caml:Num>1414.8.</caml:Num><caml:LawSectionVersion id="id_5944897E-6264-493D-9BB2-D9305B5B87EB"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>There is hereby established the Technological Displacement Act Fund within the State Treasury.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Notwithstanding any law, all civil penalties recovered by the Labor Commissioner pursuant to this

article shall be deposited in the fund.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>All moneys in the fund shall be available to the commissioner, upon appropriation by the Legislature, for purposes of enforcing this article.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_B2F31821-A071-4320-B26E-7E508FF0B7DE"><caml:Num>1414.9.</caml:Num><caml:LawSectionVersion id="id_EEEC058B-BE54-48DA-B4D3-B246719A4A33"><caml:Content><xhtml:p>The provisions of this

article do not supersede greater protections that may be provided by a collective bargaining agreement.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_1CAFF26E-10A8-4F43-ACFE-67AA21640E6D"><caml:Num>1414.10.</caml:Num><caml:LawSectionVersion id="id_28E0F40F-868D-4C3A-BA22-9677B2D63419"><caml:Content><xhtml:p>The Labor Commissioner and the Employment Development Department may adopt rules and regulations as necessary and proper to effectuate the purposes of this article, in accordance with

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_F79271E9-C2C5-4265-B0DD-614A2CD59D9A"><caml:Num>1414.11.</caml:Num><caml:LawSectionVersion id="id_410C6686-1016-45C0-832A-EDDEE32F9D27"><caml:Content><xhtml:p>The provisions of this

article are severable. If any provision of this

article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:LawHeading></caml:Fragment></caml:BillSection>"?>

Document details

CollectionCalifornia Bills
CitationSB 951
Date2026-07-02
Typebill
Languageen
SourceCA_BILL
Identifier20250SB95193AMD