California AI Layoff Law: What Workers Need to Know

Quick answer: On Sept. 30, 2026, California Gov. Gavin Newsom signed new workplace AI laws. Employers must tell workers when artificial intelligence causes a mass layoff, relocation or termination, cannot rely only on AI to discipline or fire someone, and face new limits on workplace surveillance, including a ban on surveillance tools in workplace bathrooms.

Key Takeaways

Newsom signed 13 AI-related bills on Sept. 30, including four labor-backed workplace measures: SB 947, SB 951, AB 1331 and AB 1883.
Employers will have to disclose when an AI system is the cause of a mass layoff, relocation or termination.
Employers may not rely solely on AI when deciding to discipline or fire a worker.
New surveillance limits ban monitoring tools in workplace bathrooms and, according to the Associated Press, bar using biometric data to predict a worker's emotional state.
Newsom criticized the lack of comprehensive federal AI regulation and left open the possibility of a special legislative session.

California will require employers to tell workers when artificial intelligence is behind a mass layoff, a rule the governor's office describes as first in the nation. Gov. Gavin Newsom signed a package of AI bills on Wednesday, Sept. 30, the final day for him to act on legislation this year, including four workplace measures backed by organized labor that set new rules for how companies use AI to cut jobs, discipline staff and monitor employees.

The governor's office said the laws are the first of their kind in the nation. The California Federation of Labor Unions, which backed four of the workplace bills, called them the start of guardrails that keep humans in charge of AI decisions at work.

What do the new California AI workplace laws require?

The governor's office and the Associated Press describe four main changes for employers:

Notice of AI-driven job cuts: Employers must let workers know when an AI system is the reason behind a mass layoff, a relocation or a termination. The AP reported that this notice must be given in writing.
A human must make firing decisions: Employers are barred from relying only on AI or automated decision systems when deciding to discipline or terminate an employee.
No bathroom surveillance: Workplace surveillance tools may not be used in bathrooms located in the workplace.
Limits on emotion tracking: According to the AP, employers may not use the technology to predict a worker's emotional state from biometric data.

The workplace surveillance bills in the package are AB 1331 by Assemblymember Sade Elhawary and AB 1883 by Assemblymember Isaac Bryan. The employment bills are SB 947 by Sen. Jerry McNerney, on automated decision systems, and SB 951 by Sen. Eloise Gómez Reyes, on technological displacement notice.

How does SB 951 change layoff notices?

California already has its own version of the federal Worker Adjustment and Retraining Notification law, known as Cal-WARN. According to an analysis by law firm Reed Smith, Cal-WARN applies to employers with 75 or more workers and requires notice when 50 or more employees are laid off within 30 days, or when a plant closes or operations move.

SB 951 adds a new layer: the reason for the cut. If an AI system is responsible, workers must be told. Reed Smith noted that an earlier version of the bill, as amended in May, would have set a 90-day minimum notice period for AI-driven cuts, with a lower trigger of 25 workers or a quarter of the workforce. Employers and workers should check the final enacted text with the state for the exact thresholds, timelines and effective date, since the governor's office summary does not list them.

What else did Newsom sign?

In total, Newsom signed 13 bills covering AI in the workplace, health care, online content and research, according to KRCR. Other measures in the package:

Allow doctors and licensed providers to use their own judgment when AI or clinical decision tools are part of patient care, and require developers of those tools to take reasonable steps to reduce known bias.
Bar lawyers from fully handing core legal work, such as drafting briefs or giving legal judgment, to AI.
Require California public colleges and universities to create AI training for students, faculty and staff.
Strengthen the California AI Transparency Act, ban removing digital watermarks from AI content, and require public comments at local government meetings to come from real people.
Update likeness and impersonation laws to address AI deepfakes, including explicit content made without consent.
Require gene synthesis companies to verify customers and check the genetic material they ship.

Newsom also signed an executive order directing state agencies to keep calling the technology artificial intelligence, after President Donald Trump ordered U.S. diplomats to use the term super intelligence, the AP reported.

Why is California acting now?

At a news conference, Newsom criticized the lack of comprehensive federal AI regulation, a day after Trump said leading tech executives had signed a voluntary accord to police their own AI development. Newsom said the state has to do much more without federal leadership and did not rule out calling lawmakers back for a special session on AI.

The package builds on earlier steps. Newsom previously issued Executive Order N-6-26 on AI and the workforce. Reed Smith said that order directed the Labor and Workforce Development Agency to recommend updates to Cal-WARN and asked the Employment Development Department to report on how businesses are using technology in hiring and workforce decisions. This month Newsom also signed a law requiring AI chatbot operators to assess risks before launch, the AP reported.

Newsom leaves office in January because of term limits.

What happens next?

Employers in California will need to update their layoff planning, HR procedures and monitoring policies. Labor leaders have said they will keep pushing for more regulation to keep workers in control of the technology, and further changes could follow from the state's review of Cal-WARN ordered under Newsom's executive order.

What this means for you

If you work in California, these laws give you new rights to information and to human review:

Read every layoff notice closely. Once the law takes effect, employers must disclose if an AI system caused the cut. Keep a copy for unemployment claims and any legal questions.
Ask who made the decision. If you are disciplined or fired, you can ask whether a person reviewed the decision, because employers cannot rely on AI alone.
Know your privacy limits. Surveillance tools are banned in workplace bathrooms, and emotion tracking from biometric data is restricted.
Build AI-ready skills. As employers adopt more AI tools, learning to use them in your own role can make you more valuable to your team.

If you think your employer is not following these rules, contact the California Labor and Workforce Development Agency or an employment attorney for guidance.

Frequently Asked Questions

What is California's new AI layoff law?

Among the bills Gov. Gavin Newsom signed on Sept. 30, 2026, is a requirement that employers disclose when an AI system causes a mass layoff, relocation or termination. The AP reported that workers must receive written notice.

Can an employer in California fire someone using only AI?

Under the new law, employers may not rely solely on AI or automated decision systems when making a disciplinary or termination decision, so a person must be involved.

Does California ban workplace surveillance?

Not entirely, but the new laws ban surveillance tools in workplace bathrooms. According to the AP, employers also may not use biometric data to predict a worker's emotional state.

How many AI bills did Newsom sign on Sept. 30?

Newsom signed 13 AI-related bills covering the workplace, health care, online content, deepfakes and gene synthesis. Four of them were workplace bills backed by the California Federation of Labor Unions.

Who do the California AI layoff rules protect?

They cover workers employed in California. Workers elsewhere in the U.S. are not covered by these state laws, though they show how AI layoff rules may develop.

Sources

This article was compiled by Jobsiz from the sources listed above, using AI-assisted writing and automated fact-checking. Published September 30, 2026. We update stories when new verified information becomes available.

California AI Layoff Notice Law: What Newsom Signed