On September 30, 2026, Governor Newsom signed Senate Bill (SB) 951, which amended the California Worker Adjustment and Retraining Notification Act (Cal-WARN). The amendment takes effect on January 1, 2027, one year after SB 617, which also expanded the requirements for Cal-WARN notices.

Cal-WARN applies to employers who employ, or have employed in the preceding 12 months, 75 or more employees. Existing law prohibits employers from ordering a mass layoff, relocation, or termination at a covered establishment unless, at least 60 days prior to that action, the employer provides written notice to affected employees, the Employment Development Department (EDD) and certain local officials. Additionally, employers who fail to comply with the notice requirements may be subject to a civil penalty of up to $500 per day for each day of the violation, as well as liability for back pay and the value of lost benefits for affected employees.

Now, under SB 951, the notice requirements are being expanded when artificial intelligence or other automated technology contributes to a covered employment action. Employers must now give notice when a mass layoff, relocation, or termination is “caused in whole or substantial part by artificial intelligence or other automated technology replacing or automating employment positions.” The notice must include the number, occupation, and job functions of the positions replaced, the specific type of AI or other automated technology that resulted in the displacement, and the statement, “This notice is for a technology displacement.”

The new statute contains a number of ambiguities. For example, it does not define what is meant by “substantial part,” either in terms of the number of affected employees or the percentage of the layoffs attributable to technological displacement. Additionally, although the statute defines “artificial intelligence,” it does not define “other automated technology.”

Employers considering a layoff should consult legal counsel and review and update their Cal-WARN notice templates to ensure compliance with the new requirements.

Stokes Wagner will continue to monitor these developments and provide further updates as they occur. If you have 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.