California Governor Gavin Newsom has signed an executive order on May 21 to address workforce disruptions caused by artificial intelligence. The order mandates state agencies to develop recommendations within 180 days on issues such as severance standards and "universal basic capital," a concept akin to universal basic income but focused on equity stakes for workers. California, home to 33 of the world's top 50 private AI companies, is taking a proactive stance on AI policy. The executive order requires agencies to study revisions to the Worker Adjustment and Retraining Notification Act, explore worker ownership models, enhance employment insurance, and create an AI impact dashboard to track job displacement. Additionally, the "Engaged California" initiative will gather input from those affected by AI-driven changes. This move follows Newsom's previous actions in AI governance, including a generative AI order in 2023 and a procurement framework in March 2026.