News Summary
New York State is the first in the U.S. to mandate companies disclose when AI is responsible for layoffs, adding a checkbox to WARN notices for transparency. This law, effective in March 2025, aims to address job security concerns amid rising automation. Governor Kathy Hochul emphasized the need for regulation in response to AI’s impact on employment. Although no layoffs have been linked to AI yet, experts anticipate that more states might follow suit to tackle job displacement issues as AI technologies evolve.
New York City – New York State has become the first in the nation to require companies to disclose when artificial intelligence (AI) is responsible for layoffs. This new regulation is an extension of the existing Worker Adjustment and Retraining Notification (WARN) system, designed to provide transparency in the labor market regarding the impacts of technological advancements. The requirement will officially take effect in March 2025.
Under this regulation, employers must submit a WARN notice at least 90 days prior to any mass layoffs or plant closures. A notable addition to the WARN form is a checkbox that allows employers to indicate if layoffs are due to “technological innovation or automation.” If employers select this option, they must specify whether AI or robots are the technologies contributing to the layoffs.
The initiative reflects a growing concern about the implications of AI on job security. Governor Kathy Hochul introduced this change during her January 2025 State of the State address, emphasizing the need for regulators to better understand how AI is affecting the workforce.
Currently, no companies have reported AI as a cause for layoffs on their WARN notices since the implementation of this regulation. While New York leads the way, other states have not yet adopted similar AI disclosure requirements. However, industry experts suggest that such regulations may become a common consideration among state lawmakers in response to rising concerns about job displacement caused by automation.
Reports on AI’s impact suggest that the workforce is facing significant challenges in the coming years. Predictions indicate that AI could eliminate half of entry-level, white-collar jobs within the next five years. In addition, industry leaders estimate that unemployment rates could rise by as much as 20% due to AI advancements, specifically noting that roles in sectors such as law and recruitment are already being replaced by automated technologies.
As awareness of AI’s potential risks and rewards grows, states like California have begun implementing their own regulations. Recently, California enacted laws to protect actors’ likenesses from unauthorized AI use, underscoring the heightened awareness of the implications that AI poses to various professions.
Public sentiment regarding AI in the workplace is divided. According to a Pew Research Center survey, 52% of Americans expressed concerns over the impact of AI on jobs, while only 36% held a more optimistic view of its effects. This disparity in public perception highlights the complex landscape surrounding AI and its integration into the workforce.
The aim of the new disclosure requirement in New York is to foster a better understanding among regulators and stakeholders regarding the rapidly changing labor landscape influenced by AI technologies. By mandating transparency in layoff practices and their causes, the state hopes to pave the way for informed decisions and discussions around job security in the age of automation.
As New York moves forward with its groundbreaking regulation, other states and industries may be compelled to evaluate their own policies concerning AI and workforce management to address the ongoing evolution of work in the modern economy.
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Additional Resources
- Fisher Phillips: AI Chair Discusses NY State’s WARN Notice
- Wikipedia: Artificial Intelligence
- Entrepreneur: New York Requiring Companies to Reveal if AI Caused Layoffs
- Google Search: Impact of AI on Jobs
- Bloomberg: New York State Updates WARN Notices
- Google Scholar: AI Layoffs New York
- The New York Times: FDA Drug Approvals and Artificial Intelligence
- Encyclopedia Britannica: Artificial Intelligence
- National Law Review: New York Proposal to Protect Workers Displaced by AI
- Google News: AI Regulations in New York
