New York Aims to Require AI-Related Layoff Disclosures

New York is seeking to become the first state to require employers to disclose whether layoffs are related to use of artificial intelligence as part of general state Worker Adjustment and Retraining Notification Act (WARN) notices. 

Early stages: The proposal was referenced in Democratic Gov. Kathy Hochul’s State of the State address earlier this month, but no concrete details have been released. In her address, Gov. Hochul mentioned that the state would use the data to track the potential impact of AI on workers. 

What is the WARN Act? Federal and state WARN Acts require employers to disclose in advance, to workers and the state/federal government, significant closures and layoffs. The amount of notice and the circumstances in which it is required vary from state to state. 

Why it matters: As states continue to increase legislation and regulation of the workplace in absence of federal action, first movers on an issue are usually quickly followed across the country.

• Nine of the ten existing state captive audience meeting bans, for example, were passed in the last two years alone. 

• It is extremely likely that New York’s move to require AI-related layoff disclosures will be copied elsewhere.

• Gov. Hochul’s proposal would add another layer of complexity to an already complex WARN disclosure scheme and could impede progress on the integration of artificial intelligence into the workplace.