In today’s technology-focused world, news headlines featuring updates on Artificial Intelligence (AI) are a daily occurrence. Whether articles relate to data centers, workforce challenges, or a decline in creativity, the technology seems inescapable at times. State legislatures are rushing to keep up with new developments, and newly enacted California laws could pave the way for other states’ legislatures.
In June, California launched an AI-Unemployment Tracker in hopes of connecting unemployment insurance claims with AI data. The tool will help evaluate the impact of AI on the workforce and identify occupations that may be more susceptible to AI displacement.
Relatedly, California updated its mini-WARN Act[1] to impose additional requirements on employers whose use of AI or other automated technology is a substantial reason for the layoffs. Such employers must include on their Cal-WARN Notice:
- The number, occupation, and work location of layoffs substantially attributable to replacement or automation by AI or other automated technology
- The job functions performed by replaced workers that will be automated
- The category or type of AI system/automated technology that substantially resulted in the displacement
- A statement on the top of the notice that “This notice is for a technology displacement”
California’s additions to these statutes apply to “other automated technology” as well as AI, so employers should carefully consider whether these new requirements apply. The revisions to the statute become effective January 1, 2027.
Employers in California should also be aware of restrictions under the state’s “No Robo Bosses Act of 2026” (SB 947) that goes into effect July 1, 2027. The Act prohibits employers from relying solely on automated decision tools in discipline or termination decisions. It requires human corroboration and certain post-use disclosures about AI/algorithms and personnel data used in decision-making.
Some states already require disclosures about how algorithms or AI will be used in the hiring process. Like California, states are beginning to explore the impacts of AI at other stages of the employment relationship. Employers using AI, especially as part of any employment decision-making processes, should be cognizant of new legislation and developments that may affect certain practices.
With AI regulations evolving quickly, the attorneys at Bricker Graydon Wyatt are happy to help with questions related to AI and its impact on the workplace.
[1] The federal Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) and various state-enacted “mini-WARNS” impose requirements for employers to make notifications and disclosures in advance of certain plant closings and mass layoffs.
