Governor Newsom Signs Executive Order Requiring New Oversight on AI’s Impact on the Workplace

Published: May 22, 2026

by Lizbeth (Beth) V. West
The Labor & Employment Law Blog

On May 21, 2026 Governor Newsom signed Executive Order N-6-26 (“EO N-6-26”) which will require state agencies to research and propose certain policies and measures to mitigate the negative impact of AI on California workers.

EO N-6-26 notes that the AI industry has grown exponentially, with conservative estimates placing it at approximately $375 billion annually worldwide. It has far-reaching deployment in industries as diverse as transportation, retail, manufacturing, energy, education, healthcare, and IT & telecom. The Governor believes that California must continue to lead in supporting responsible growth of emerging technologies, but must also address the impact of such technology on society and maintain economic opportunity for all Californians. This includes, reviewing and updating, as needed, existing protections and exploring other tools for more broadly sharing the economic benefits with workers in industries and businesses impacted by AI. The Governor explained that “while new technologies present opportunities, it is in our collective interest to take proactive steps to manage and mitigate potential disruptions to our workforce, education systems, and economy, alongside harnessing opportunities, through ongoing study and recommendations to help guide future policymaking and regulations to protect the public, workers, and our economy.”

Below are just some of the actions required by EO N-6-26:

  1. Within 90 days of the issuance of EO N-6-26
    • The Labor and Workforce Development Agency (LWDA) in consultation with other state agencies, and academic and industry partners, shall provide the Governor with a review of the emerging body of academic research identifying the potential workforce impacts of AI, including potential disproportionate impacts on demographic groups, and early warning signs on future labor disruptions.
    • Within 90 days of the issuance of this Order, the Employment Development Department (EDD) shall launch a dashboard showing AI’s impacts on employment across various sectors using unemployment insurance data.
  2. Within 180 days of the issuance of EO N-6-26.
    • The LWDA shall provide the Governor with recommendations on revisions and updates to the California Worker Adjustment and Retraining Notification (WARN) Act to address early warning signs of disruptions by AI.
    • The LWDA shall submit to the Governor a review of policies and practices that provide displaced workers with a safety net, including severance and other forms of compensation such as stock or other forms of equity, and any recommendations for incorporating such policies or strengthening existing programs.
    • The LWDA shall submit to the Governor a workplan for expanding awareness of and enrollment in employment insurance programs.
    • The LWDA, in coordination with the Governor’s Office of Service and Community Engagement (GO-Serve) and other relevant agencies, shall identify, promote and enhance service opportunities, including through California Volunteers.
    • The LWDA, in coordination with the Jobs First Council, shall submit to the Governor recommendations on options for improving efforts to connect unemployed workers to opportunities for training and upskilling.
  3. By October 15, 2026.
    • The LWDA, in consultation with labor organizations, employer groups, and relevant experts, shall review how the collective bargaining process is incorporating and addressing AI, including how workers’ voices are incorporated in adoption of emerging technologies.
    • The LWDA, shall review existing workforce training programs to ensure programs are fit for purpose and targeted towards growing industries and professions.
    • The EDD, in partnership with local workforce development boards, shall develop an AI playbook to expand dislocated worker strategies for occupations exposed to AI and provide Local Boards with technical assistance on the utilization of certain resources for AI literacy-related programs.

EO N-6-26 provides for further actions by various other state agencies, like the Department of Health and Human Services, as well as California’s institutes of higher education, to evaluate and, where appropriate, implement measures to support a workforce able to leverage the opportunities presented by AI. Importantly, EO N-6-26 expressly provides that the Order does not create any rights or benefits, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person. You can review the full version of EO N-6-26 here.