Illustration depicting the role of AI in job layoffs and workplace changes in New York.
New York has become the first state to require companies to disclose the use of artificial intelligence (AI) in layoffs. This new policy, effective in March 2025, aims to provide transparency on AI’s impact in the labor market as part of the Worker Adjustment and Retraining Notification system. Employers must indicate if AI is involved in mass layoffs affecting 50 or more employees, promoting accountability and dialogue about the social implications of AI in the workplace.
New York has become the first state in the United States to mandate that companies disclose if artificial intelligence (AI) plays a role in layoffs. This significant policy change is part of the state’s existing Worker Adjustment and Retraining Notification (WARN) system and is set to take effect in March 2025. The initiative aims to provide regulators with a clearer understanding of AI’s impact on the labor market.
Under the new rule, employers must complete a form at least 90 days before conducting a mass layoff or plant closure, which affects 50 or more employees. Companies are now required to indicate whether “technological innovation or automation,” including AI, is a factor in job cuts. Should an employer select this option, they must provide details about the technology responsible for the layoffs, citing AI or robotic systems specifically.
This measure was proposed by Governor Kathy Hochul in her January 2025 State of the State address, signaling a proactive approach to addressing the implications of AI on employment. It reflects New York’s effort to better protect workers and provide transparency in the decision-making processes related to job reductions.
As of the report date, there have been no recorded WARN notices claiming that layoffs were due to AI-driven decisions. Experts suggest that this lack of disclosure does not negate the growing concern regarding the impact of AI on employment opportunities. Predictions regarding AI’s potential to alter the job landscape are alarming, with some forecasts suggesting that AI could eliminate up to half of all entry-level, white-collar jobs within the next five years.
The implementation of this disclosure requirement is an attempt to foster an informed dialogue about the ethical and social responsibilities related to the adoption of AI technologies in the workplace. The data gathered through these disclosures may inform workforce retraining programs and shape future economic policies aimed at mitigating the adverse effects of automation.
Furthermore, the initiative could have repercussions on corporate public relations, brand reputation, and employee morale. Companies may face increased scrutiny and pressure to show commitment to their workforce amidst the rise of AI technologies. As awareness of these impacts grows, workers may seek retraining in fields less exposed to automation, prompting an overall shift in workforce education and skills development.
New York’s law may also inspire other states to consider similar regulations, igniting national discussions about the necessity of addressing AI’s effects on the labor market. This move may enable unions and advocacy groups to strengthen their campaigns for improved labor protections and support structures for displaced workers.
The disclosure requirement marks a notable step toward balancing technological advancements with the human costs associated with these developments. As AI continues to evolve, New York’s initiative reflects both a commitment to protecting workers and an understanding of the transformative potential of technology across various sectors.
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