Policy brief · Technology
No. 05 · October 2026
AI and Working People
Make the machine work for the people who do the work.
The bottom line
- Since 1979, productivity grew 90.2% while typical workers' pay grew 33.0%.1
- Workers' share of business output fell to 52.8% in mid-2026, the lowest on record.2
- Employers cited AI in 120,136 announced job cuts through September 2026, the top reason given.4
- Starting July 2027, California will require human review before AI-driven firing or discipline. Congress has a bill to stop invasive workplace surveillance.7,9
- 80% of Americans want AI rules kept even if development slows.13
01The problem
The gains go up, not out. If typical pay had kept pace with productivity since 1979, the Economic Policy Institute estimates workers would earn $16.40 more an hour.1 Labor's share of output hit its lowest level since records began in 1947.2
The build-out is enormous. Amazon, Microsoft, Alphabet and Meta plan more than $700 billion in capital spending in 2026.3
The first rung is going. Employment for workers ages 22 to 25 in the most AI-exposed jobs fell about 13% relative to less-exposed jobs.5
Growth since 1979
Economic Policy Institute, 1979 to 2025.1
02The evidence
Workers are worried, and for good reason. 52% of U.S. workers say they are worried about AI's future use in the workplace, and 32% expect fewer job opportunities for themselves.6
Unions have shown it can be done. After a five-month strike in 2023, the Writers Guild of America won contract terms that bar AI from writing or rewriting scripts and stop studios from forcing writers to use it.14
The industry is spending to block rules. 556 groups lobbied the federal government on AI in the first half of 2024 alone, and a pro-AI super PAC launched with more than $100 million in pledges.10,11 A 10-year ban on state AI laws failed in the Senate 99 to 1, but Colorado later replaced its AI law with a narrower one.12,15
03The plan
Two models are ready now. The Stop Spying Bosses Act (S. 4831, H.R. 9402), introduced in June 2026, limits what employers can collect about workers and requires disclosure.7,8 California's No Robo Bosses Act (SB 947), signed September 30, 2026, requires human review of AI-driven discipline and firing.9 The Constituent agenda:
| Reform | What it does |
|---|---|
| A seat at the table | A right to bargain over how AI is brought into a workplace, before it arrives. |
| No robot bosses | Human review and written notice before AI-driven discipline or firing. |
| Limits on surveillance | No monitoring of organizing, health, immigration status or off-duty life; workers can see their data. |
| Share the gains | Tax policy that stops rewarding companies for replacing workers, and a public share in AI built with public resources. |
| A real safety net | Modern unemployment insurance, wage insurance and free training. |
| Keep states free to act | No federal preemption of state protections unless Congress passes stronger ones. |
04Who benefits and who pays
Who benefits
05What lawmakers can do
- Cosponsor the Stop Spying Bosses Act (S. 4831, H.R. 9402).7,8
- Pass a state No Robo Bosses law on California's model.9
- Oppose federal preemption of state AI protections.12
- Refuse AI industry PAC money while these rules are written.
- Use the toolkit for the bill's language, a model resolution and answers to the industry.
Notes
- Economic Policy Institute, wage calculator, 1979 to 2025
- Bureau of Labor Statistics, labor share at its lowest level, Q2 2026
- Sherwood News, Big Tech plans more than $700 billion in 2026 capital spending
- Challenger, Gray & Christmas, September 2026 job cuts report
- The Register on the Stanford "Canaries in the Coal Mine" study, 2025
- Pew Research Center, U.S. workers on AI in the workplace, 2025
- S. 4831, Stop Spying Bosses Act, as introduced June 18, 2026 (GovInfo)
- Reps. Deluzio and Bonamici reintroduce the Stop Spying Bosses Act (H.R. 9402)
- SHRM, Newsom signs revamped No Robo Bosses Act into law, October 2026
- TechCrunch, AI lobbying surges (OpenSecrets data), 2024
- NBC News, the $100 million Leading the Future super PAC
- Senate Commerce Committee, AI moratorium struck 99 to 1, July 2025
- Gallup, Americans prioritize AI safety and data security, 2025
- VentureBeat, Hollywood writers win first protections against AI, 2023
- Davis Wright Tremaine, Colorado AI Act repealed and replaced, 2026