Every employment relationship should leave a clear paper trail, from the first job posting to the final paycheck. If a dispute ever ends up in court, good records are your evidence. They’re also just good business. They keep you consistent, help you treat every employee fairly, and make sure everyone knows where they stand. As new rules take shape around workplace technology, employers will be asked to explain more of their decisions, not fewer.
Governor Newsom recently signed SB 951 (2026), which takes effect January 1, 2027. When a covered employer’s mass layoff under Cal-WARN is caused in whole or in substantial part by AI or automation, the notice must now be labeled a “technology displacement.” It also has to identify the affected positions, the job functions being automated, and the type of technology involved.
The law is narrow, and most employers won’t trigger it. But it signals something broader: lawmakers increasingly expect employers to show their reasoning when technology affects who keeps their job. Solid documentation is how you do that. It’s also a good reason to make sure the basics are in place, from hiring through separation. If you’d like a second set of eyes on your process, reach out. We’re always happy to walk through it with you.
