The State of California enacted Senate Bill 951 on 12 October 2026, requiring employers to disclose whether mass layoffs are driven by artificial intelligence or automated technologies [1].
The statute amends the California Worker Adjustment and Retraining Notification (Cal/WARN) Act, establishing that employers must specify the technological systems responsible when a covered reduction is caused in whole or substantial part by automation [1].
The requirements become operative on 1 January 2027 [1]. The law also creates disclosure duties when an employer ceases hiring for specific positions because software has reduced or eliminated operational requirements [1].
Under current California law, covered employers must provide 60 days of advance notice before executing a mass layoff, but are not required to state whether technological replacement prompted the dismissal [1].
What it measures
The statutory reporting duties of California commercial and industrial employers with 75 or more full-time or part-time personnel conducting a layoff of 50 or more employees within a 30-day window [1].
What it does not tell you
The statute does not establish a mathematical formula or percentage threshold to determine what constitutes a "substantial part" of an employment decision [1]. Nor does it mandate public disclosure of proprietary algorithm designs or model training data [1].
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