On May 21, 2026, Governor Newsom issued Executive Order N-6-26 in preparation for the impacts of artificial intelligence on the workforce. The order requires state agencies, labor experts, economists, universities, and industry leaders to develop policies, gather data, and identify early warning signs of AI workforce disruptions.

The EO provides, among other things, the following:

• The Labor and Workforce Development Agency (LWDA), the Department of Finance, other industry partners, and state agencies are to provide the Governor with a review of academic research identifying the potential impacts of AI on the California labor market and disproportionate impacts on demographic groups.

• LWDA is also to provide the Governor with recommendations on revisions and updates to the California Worker Adjustment and Retraining Notification (WARN) Act that provides early warning data on emerging industry trends.

• LWDA is to submit to the Governor a review of policies and practices that provide displaced workers with a safety net, including severance and other forms of compensation.

• LWDA, along with other organizations, is to review how the collective bargaining process is incorporating and addressing AI.

• The Employment Development Department (EDD) is to provide a summary of feedback from businesses about the role of new technology in hiring and workforce decisions.

Employer Takeaways

Although the EO does not create any new laws, the Governor may potentially use the recommendations and information received to expand or enact new policies in response to AI’s effect on the workforce such as expanding the WARN requirements, requiring severance, or regulating the use of AI use in hiring and employment decisions.

Stokes Wagner will continue to monitor updates and will provide additional updates as they become available. If you have any questions, do not hesitate to contact a Stokes Wagner attorney.

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THIS DOCUMENT PROVIDES A GENERAL SUMMARY AND IS FOR INFORMATIONAL/EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE COMPREHENSIVE, NOR DOES IT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL BEFORE TAKING OR REFRAINING FROM TAKING ANY ACTION.