California has passed a law requiring employers to say so when artificial intelligence or automated technology is behind a mass layoff. SB 951, signed on September 30, 2026, amends the state's Cal/WARN Act, its version of the federal layoff-notice law.
The disclosure applies when layoffs of 50 or more workers, relocations or shutdowns are caused "in whole or in substantial part" by AI or automation. It covers employers with 75 or more employees. The law took effect on signing, and the reporting requirements apply by January 1, 2028.
In those cases, an employer's layoff notice must include:
The number of displaced workers and their job classifications
The work locations affected
A description of the job functions that were automated
The type of AI system or technology involved
A header stating that the notice is for a technology displacement
The penalty for breaching the notice rules stays at up to $500 per day, the same as under existing Cal/WARN rules.
The law aims to bring more transparency to technology-driven job losses and to build a data record of how AI affects hiring and employment. For HR teams, that means adding AI-disclosure steps to layoff procedures, working with state agencies on the expanded reporting, and keeping detailed records of workforce decisions driven by technology.
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