SB 951

Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner (commissioner), within the Department of Industrial Relations. Existing law establishes the Employment Development Department (EDD), which is administered by the Director of Employment Development. Under existing law, the Director of Employment Development is vested with specified duties, purposes, responsibilities, and jurisdiction related to job creation activity functions, among other things. This bill would establish the California Worker Technological Displacement Act, which would require a covered employer, as defined, to provide at least a 90-day advanced written notice, as described, before any technological displacement or termination of contract affecting 25 or more workers or 25 percent of the workforce, whichever is less. The bill would require a covered employer to provide that notice to affected employees, the EDD, and specified state and local entities. The bill would also require a covered employer to provide a written technology hiring disruption notice to be provided to the EDD and specified local entities when it executes a technological reduction in hiring or cessation in hiring due to the adoption of artificial intelligence or other automating technology. The bill would impose various reporting requirements on the EDD. For covered employers with more than 100 workers, this bill would entitle workers affected by technological displacement or termination of contract to a right of first bid on other positions with the employer and would prohibit discharge of those workers during a 90-day period from when notice is provided. This bill would require a covered employer that fails to provide notice to provide back pay and benefits to each affected employee, as described, for a maximum of 60 days or one-half the number of days the employee was employed, whichever period is shorter. The bill would also impose a $500 civil penalty for each day of the covered employer’s violation, except as provided. This bill would set forth procedures for reporting violations to the commissioner and filing a civil action in court. The bill would provide enforcement authority and related powers to the commissioner. The bill would establish the Technological Displacement Act Fund, require all civil penalties recovered by the commissioner to be deposited in the fund, and make all moneys in the fund available to the commissioner upon appropriation. The bill would make its provisions severable.