In summary
In an AI executive order, the governor called on state officials to study everything from job subsidies to stock compensation policies to mitigate tech-driven layoffs.
Amid tech layoffs, anxiety around artificial intelligence and a forthcoming run for president, Gov. Gavin Newsom today signed an executive order that calls for state agencies to explore ways to mitigate job losses stemming from AI.
The order, among other things, tells state agencies to explore severance policies, subsidized employment and other ways to help displaced workers. It also calls for a report on the impact of AI on the California labor market.
In addition, it calls for the study of increased job training , stock compensation, cooperative business ownership for workers and how unions are negotiating over AI.
Newsom signed executive orders last month and in 2023 simultaneously putting in place AI protections and encouraging state agencies to use the technology.
The latest order comes a day after Facebook owner Meta laid off 8,000 workers, with CEO Mark Zuckerberg citing AI in a memo to staff after the cuts. Tech companies Cisco and Block also recently cited AI after laying off thousands of workers. The order also comes two days after the California Senate passed the No Robo Bosses Act, which prevents businesses from using decisions made by AI and other automated systems as the sole reason a person gets fired or disciplined. Newsom vetoed a similar bill last fall.
In February, AFL-CIO president Liz Shuler, members of the California Labor Federation and labor leaders in Democratic primary states pledged to pull support for a Newsom 2028 presidential campaign if he didn’t take steps to protect workers from artificial intelligence. Newsom’s veto of the predecessor of the No Robo Bosses Act was named as a reason for that pledge.
In a statement shared with CalMatters, California Labor Federation president Lorena Gonzalez said the executive order is welcome but not enough.
“We are glad that Governor Newsom is acknowledging the potential harm of AI on workers, but it’s not enough to just study the issue, we have to take action now. Catastrophic job loss from AI is not inevitable, it’s a political choice,” she said.
