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.