News Summary
New York has become the first state to require employers to disclose if layoffs are driven by artificial intelligence. Effective from March 2025, this initiative aims to bring transparency to the impact of technological advancements on job losses. Companies must now indicate if ‘technological innovation’ contributed to layoffs, sparking discussions about the ethical implications of AI in the labor market. While the concern over AI’s effect on jobs is growing, no companies have yet reported AI-related layoffs in New York.
New York has become the first state in the United States to require companies to disclose whether layoffs are driven by artificial intelligence (AI) or other technological innovations. This new mandate, part of the state’s existing Worker Adjustment and Retraining Notification (WARN) system, will be effective starting March 2025. The initiative is set to impact how regulators and the public understand the ramifications of AI on the labor market.
Employers will now have to complete a new checkbox on the WARN form, which must be submitted at least 90 days prior to announcing any mass layoffs or plant closures. This checkbox requires employers to indicate if “technological innovation or automation” contributed to the job cuts. If the checkbox indicating AI involvement is selected, companies are then directed to specify the particular technology that played a role, including whether it involved AI, robotics, or other automation technologies.
The decision to enforce this requirement was proposed by Governor Kathy Hochul during her January 2025 State of the State address. Despite the new regulation, it is notable that no companies have yet cited AI as a reason for layoffs in New York under the WARN notice system. This development indicates that while the concern over AI`s impact on jobs is growing, actual acknowledgment of its role in layoffs has yet to be observed.
While no other states in the U.S. have adopted similar mandates as of now, experts believe New York’s initiative reflects escalating apprehensions about the implications of AI for labor markets and employment rates. Predictions from industry leaders suggest a potentially significant disruption in job availability due to advancing technology. For instance, forecasts indicate that AI could eliminate half of all entry-level white-collar jobs within the next five years and may result in a 20% increase in unemployment. Furthermore, there are warnings that AI will fully take over programming functions within a year and is already having effects in professions like law and recruitment.
This new disclosure requirement aims to promote transparency, which is expected to aid policymakers in formulating effective workforce retraining programs and economic policies to counteract the negative effects of automation. By mandating companies to reveal the role of AI in job losses, the initiative also places businesses under scrutiny. This disclosure may also lead to adverse public relations consequences for companies willing to acknowledge that technology influenced their workforce reductions.
In addition to the implications for businesses, the new requirement could empower workers to pursue retraining for roles that are less susceptible to automation. It may also inspire advocates to push for stronger labor protections in light of the evolving job landscape due to technological advancements. The transparency surrounding layoffs resulting from AI involvement may ignite discussions across the nation regarding similar regulations in other states, aiming to address the intersection between technology and labor.
Ultimately, this law emphasizes the necessity of striking a balance between the benefits of technological advancement and the ethical considerations regarding human employment. By encouraging states to evaluate and potentially implement regulations concerning AI’s impact on jobs, New York could lead the way for a national dialogue on how to effectively navigate the complexities of modern labor dynamics.
Deeper Dive: News & Info About This Topic
- Entrepreneur: New York Requiring Companies to Reveal if AI Caused Layoffs
- Wikipedia: Artificial Intelligence
- Bloomberg: New York State Updates WARN Notices
- Google Search: AI and job layoffs
- New York Post: Microsoft Planning to Ax Thousands of Sales Jobs
- Encyclopedia Britannica: Workforce
- HR Grapevine: New NY Law Requires Companies to Disclose AI Role in Layoffs
- Google News: AI in employment
- Fisher Phillips: NY State’s WARN Notice to Identify Layoffs Tied to AI
- Google Scholar: AI impact on employment
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.
