News Summary
New York has set a precedent as the first U.S. state to require companies to disclose the role of artificial intelligence in mass layoffs under the WARN system. Effective March 2025, employers must indicate ‘technological innovation or automation’ as a cause, and specify if AI is involved. This law comes amid rising concerns about AI’s impact on jobs, with predictions of significant job displacement in various sectors. As businesses adapt, the need for transparency regarding AI’s influence on employment has never been more critical.
New York has become the first state in the United States to implement a requirement for companies to disclose whether artificial intelligence (AI) plays a role in mass layoffs as part of the Worker Adjustment and Retraining Notification (WARN) system. This new rule, effective March 2025, mandates that employers indicate “technological innovation or automation” as a reason for layoffs on WARN notices.
If companies choose to cite technological factors in their layoff notifications, they will be required to specify the types of technology involved, including AI or robots. This significant change follows a proposal made by New York Governor Kathy Hochul during her January 2025 State of the State address.
Despite the law being enacted, reports indicate that, as of the latest data available, no companies have yet reported layoffs attributable to AI under the WARN system. New York’s legislative action comes amid growing national concerns regarding the impact of AI on the labor market. While no other states have adopted similar requirements for AI disclosure in WARN notices, experts suggest increasing regulatory scrutiny is likely as AI technology continues to evolve and reshape various industries.
The introduction of this requirement aims to enhance transparency and enable the collection of data on the effects of AI technologies on employment. The NY WARN Act stipulates stricter compliance measures than the federal WARN Act, including a mandatory 90-day notification period for companies with 50 or more employees before any layoffs take place.
As concerns about the potential impact of AI on the workforce increase, industry leaders are voicing significant predictions regarding job displacement. For instance, high-profile figures in the tech sector have noted alarming trends. One prominent prediction is that AI could eliminate half of all entry-level white-collar jobs over the next five years, possibly leading to a 20% rise in unemployment. Additionally, expectations are growing that AI may soon take over coding responsibilities that are currently fulfilled by human software engineers.
The implications of these developments are profound. Certain professions, such as law and recruitment, are reportedly experiencing a trend where AI is “fully replacing people.” With these changes on the horizon, employers are encouraged to familiarize themselves with the effects of AI on their workforce. Companies are advised to evaluate their operations to ascertain if AI may lead to any upcoming layoffs and to seek legal guidance to navigate compliance with the new disclosure requirement.
In summary, New York’s implementation of AI disclosure in layoff notifications marks a milestone in addressing the intersection of technology and employment. As businesses prepare for these changes, the call for increased transparency highlights the growing recognition of AI’s potential role in shaping the future labor market. Observers anticipate that this legislation may set a precedent for other states as they consider similar measures in response to the challenges posed by rapidly advancing technologies.
Deeper Dive: News & Info About This Topic
- Entrepreneur
- The New York Times
- Bloomberg
- National Law Review
- Littler
- Google Search: Artificial Intelligence Impact on Employment
- Wikipedia: Worker Adjustment and Retraining Notification Act
- Encyclopedia Britannica: Artificial Intelligence
- Google News: AI Layoffs
- Google Scholar: AI Impact on Jobs
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
