Newsom signs executive order directing state agencies to study AI job loss protections

California Gov. Gavin Newsom signed an executive order directing state agencies to study AI-related job loss protections, including severance and retraining programs. Labor groups say studying the issue isn't enough.

Categorized in: AI News Government
Published on: May 23, 2026
Newsom signs executive order directing state agencies to study AI job loss protections

California Governor Orders Study of AI Job Loss Protections

Gov. Gavin Newsom signed an executive order directing state agencies to study ways to help workers displaced by artificial intelligence, addressing growing anxiety about tech-driven layoffs and labor pressure ahead of a potential 2028 presidential run.

The order instructs state agencies to explore severance policies, subsidized employment, job training programs, and stock compensation for affected workers. It also calls for a report on AI's impact on California's labor market.

The timing follows recent mass layoffs at major tech companies. Meta cut 8,000 workers with CEO Mark Zuckerberg citing AI in a staff memo. Cisco and Block also recently announced layoffs attributed to the technology.

The executive order comes one day after Meta's announcement and two days after the California Senate passed the No Robo Bosses Act, which prevents employers from using AI decisions as the sole basis for firing or disciplining workers. Newsom vetoed a similar bill last fall.

Labor Groups Say Study Isn't Enough

Lorena Gonzalez, president of the California Labor Federation, said the executive order acknowledges the problem but falls short. "It's not enough to just study the issue, we have to take action now," she said in a statement.

In February, the AFL-CIO and labor leaders in Democratic primary states threatened to withdraw support for Newsom's 2028 presidential campaign unless he took steps to protect workers from AI. They specifically cited his veto of the predecessor to the No Robo Bosses Act.

This order represents Newsom's second attempt to balance competing interests. He signed AI protection and encouragement orders last month and in 2023 that simultaneously promoted worker safeguards and urged state agencies to adopt the technology.

For government employees, understanding how your agency approaches AI for Government and AI for Human Resources decisions will likely become more relevant as these policies develop.


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