Employers must now name the AI system, the jobs lost, and the functions being automated
California just told employers to name the robot that took the job.
SB 951, signed into law on September 30, 2026, rewrites the rules on layoff notices in the state. Sponsored by Senator Reyes, the bill amends California's Worker Adjustment and Retraining Act - the Cal/WARN Act - and it lands squarely on the desk of every HR team running a workforce of 75 or more.
Here is what changed. When a mass layoff of 50 or more workers, a relocation, or a termination of operations is caused "in whole or in substantial part" by AI or automated technology, the employer's WARN notice must now include extra detail. Not vague detail. Specific detail.
The employer must state how many workers are being displaced, their job classifications, and where they work. It must describe the job functions being automated. It must identify the type of AI system or technology doing the replacing. And the notice must carry the line "This notice is for a technology displacement" right at the top.
That is on top of what the Cal/WARN Act already requires - 60 days' written notice to affected workers, the Employment Development Department (EDD), local workforce boards, and local elected officials. SB 951 does not replace any of that. It stacks a new AI-specific layer on top.
The state is also building a tracking system around this. The EDD must publish summaries of AI-displacement notices on its website and post quarterly statewide reports on technological displacements.
Then there is the longer play. The bill introduces a new term - "technological cessation in hiring" - meaning an employer permanently stops hiring for a particular role because of AI or automation. That definition applies even if some workers in that role still have jobs, and even if total headcount does not drop.
By January 1, 2028, the EDD must deliver a report to the Legislature on how AI is reshaping hiring practices across industries and regions. That report may include recommendations on whether employers should have to publicly disclose when they stop hiring for a role because a machine does it now. The reporting mandate sunsets on January 1, 2029.
Employers who breach Cal/WARN notice requirements already face penalties of up to $500 per day. SB 951 does not change that figure, but it widens what counts as a compliant notice.
For HR teams in California, the practical takeaway is a new compliance checklist item: if AI is behind the layoffs, the paperwork just got more detailed - and more public.
