California Will Require Employers to Disclose AI-Driven Layoffs (SB 951)

On September 30, 2026, Governor Gavin Newsom signed Senate Bill 951, which requires California employers, beginning January 1, 2027, to state in their Cal-WARN layoff notices when a mass layoff, relocation or closure is caused in whole or in substantial part by artificial intelligence or other automated technology. The notice must identify the jobs affected, the work being automated and the type of technology involved.

For California workers, this means more information at one of the hardest moments of a career. If your position is being replaced by software or machines, you will be told that directly, along with details that can help you plan retraining, weigh a severance offer and understand what happened.

This post explains what SB 951 changes, what stays the same under California’s WARN Act, and the rights you have if you are laid off.

What happened

SB 951, authored by Senator Eloise Gómez Reyes, was signed on September 30, 2026, and filed with the Secretary of State the same day as Chapter 860 of the Statutes of 2026, according to the official bill record. It was one of several AI and workplace bills the Governor signed that day, alongside the “No Robo Bosses Act” (SB 947), which limits AI-driven discipline and firing.

SB 951 amends Labor Code Sections 1400.5 and 1401, the core of the California Worker Adjustment and Retraining Notification Act (Cal-WARN). Because the bill sets no special start date, it takes effect on January 1, 2027, like most new California statutes. Fisher Phillips, an employer-side firm, also reported a January 1, 2027 effective date.

Some early news coverage described a separate trigger tied to the share of a workforce displaced. The bill text as signed contains no such percentage threshold. The 60-day notice period and the 50-employee trigger remain the same.

SB 951 also directs the Employment Development Department (EDD) to report to the Legislature by January 1, 2028 on how AI is affecting hiring, including recommendations on whether employers should give notice when they permanently stop hiring for jobs because of AI.

Cal-WARN rule	What the law says
Who must give notice	Employers with a covered establishment: a site that employs, or employed in the past 12 months, 75 or more people
What triggers notice	A layoff of 50 or more employees within 30 days, a relocation of 100 miles or more, or a closure
How much notice	60 days before the order takes effect
Who receives it	Affected employees, EDD, the local workforce development board, and local city and county officials
New for AI layoffs (Jan. 1, 2027)	A technology-displacement label and four categories of detail (below)
EDD reporting	Public summaries of these notices and a quarterly statewide summary; AI hiring report due Jan. 1, 2028

By the numbers60 days

What SB 951 requires in a layoff notice

When a mass layoff, relocation or termination is caused in whole or in substantial part by an AI system or other automated technology replacing or automating jobs, the employer’s Cal-WARN notice must also include (Labor Code 1401(d)):

• The number, classification or occupation, and work location of the layoffs substantially due to AI or automation.
• The job functions those workers performed that will be automated.
• The specific category or type of AI system or other technology that substantially caused the displacement.
• The statement “This notice is for a technology displacement” at the top of the notice.

These items are in addition to what every Cal-WARN notice already must contain, including the information required by the federal WARN Act, contact details for the local workforce development board and its job services, information about CalFresh food assistance, and a working employer email address and phone number.

---

What this means for California workers

SB 951 is a transparency law. It does not ban layoffs caused by AI, and it does not change the severance, back pay or penalties that already apply under Cal-WARN. What it changes is what you are told and what the public can see. Because EDD must publish summaries of these notices, workers, researchers and lawmakers will be able to track which jobs are being automated across the state.

There are open questions. The law does not define how much of a role automation must play for a layoff to be caused “in substantial part” by it, a gap Fisher Phillips flagged for employers. Expect disputes over whether a reorganization was really about technology.

Keep in mind that Cal-WARN covers only larger layoffs at sites with 75 or more employees, and “employee” means someone who worked for the employer at least 6 of the prior 12 months. Smaller layoffs are not covered, but other laws still protect you, especially if the people chosen for layoff were older workers, workers on leave, or workers who had complained.

Your rights if you are laid off

• Notice or pay. An employer that orders a covered mass layoff without the required notice can owe each affected employee back pay and the value of lost benefits for each day of the violation, up to 60 days (Labor Code 1403), and can face a civil penalty of up to $500 per day. See our guide to Cal-WARN notice rights.
• Final pay on your last day. When you are laid off, your final wages, including accrued vacation, are generally due immediately (Labor Code 201, 227.3).
• Fair severance terms. A severance agreement must tell you that you have the right to consult a lawyer and give you at least five business days to consider it (Gov. Code 12964.5). Workers 40 and older in a group layoff generally get 45 days to consider and 7 days to revoke under federal law. Read our guide to severance agreement review before you sign.
• No discriminatory selection. Choosing who is laid off based on age, disability, pregnancy, race or another protected trait violates the Fair Employment and Housing Act (Gov. Code 12940), even in a genuine restructuring.
• Unemployment benefits. Workers laid off for lack of work can generally claim unemployment insurance. Our guide to unemployment after losing your job explains how to apply.

For an overview of what else changes next year, see new California employment laws for 2027.

---

What to do now

1. Keep your notice. Save the layoff notice and note the date you received it and the effective date of your layoff.
2. Check the details. After January 1, 2027, if automation is part of the reason, the notice should say so and describe the affected jobs and technology.
3. Count the days. If you received less than 60 days’ notice of a covered layoff, write down the dates. You may be owed back pay.
4. Confirm your final pay. Compare your final check with your hours, unused vacation and any commissions owed.
5. Do not rush a severance agreement. Use the time the law gives you, and have it reviewed.
6. File for unemployment promptly with EDD, and ask the local workforce development board about retraining.

Key fact

Frequently asked questions

When does SB 951 take effect?

January 1, 2027. It was signed on September 30, 2026, but layoff notices issued before 2027 are governed by the current rules.

Does SB 951 stop employers from replacing workers with AI?

No. It requires disclosure, not permission. Employers can still restructure, but they must give the required notice and follow anti-discrimination and wage laws.

Does the 60-day notice period change for AI layoffs?

No. The bill as signed keeps the existing 60-day notice requirement and the 50-employee trigger. It adds information that must appear in the notice.

What if my employer does not mention AI but I believe automation replaced my job?

Write down what you were told and keep any records you lawfully have. The Labor Commissioner, EDD and courts may ultimately decide whether a layoff was caused in substantial part by automation. A lawyer can review whether the notice was complete.

---

Sources

• California Legislative Information: SB 951, Employment: technological displacement: notice (Chapter 860, Statutes of 2026)
• Office of the Governor: Governor Newsom signs more first-in-the-nation worker protections
• Fisher Phillips: California employers will soon need to say when AI causes a mass layoff
• Bloomberg Law: Newsom signs bill mandating notice of AI-related mass layoffs
• KQED: Newsom signs slate of AI workplace laws barring robo bosses and surveillance

---