New York Mandates AI Disclosure in Mass Layoffs

News Summary

New York has become the first state to require companies to disclose the role of artificial intelligence in mass layoffs. Starting March 2025, employers must inform if technological innovation is a factor in job cuts. This regulation targets transparency in the workforce’s future amid concerns of automation taking over jobs, particularly in white-collar positions. Currently, no AI-related layoffs have been reported. The move, proposed by Governor Kathy Hochul, aims to monitor the impact of AI on employment as its use expands within industries.

New York has become the first state in the United States to mandate that companies disclose the involvement of artificial intelligence (AI) in mass layoffs. This new requirement, which is part of the Worker Adjustment and Retraining Notification (WARN) system, aims to provide transparency regarding the role of technology in job loss.

The disclosure requirement took effect in March 2025. Under this initiative, employers who plan to conduct mass layoffs or plant closures must complete a new form at least 90 days prior to the layoffs. A significant addition to this form is a checkbox that requires employers to indicate whether “technological innovation or automation” is a factor in the layoffs. If selected, employers are further prompted to specify the technology contributing to the job cuts, including AI or robots.

Currently, no companies in New York have identified AI as a reason for any layoffs in the WARN notices submitted. This new regulation was proposed by Governor Kathy Hochul during her State of the State address in January 2025. The initiative is being closely monitored, as it raises questions about the effects of AI on the workforce.

The growing trend of AI in workplace automation has prompted discussions about job security and the future of employment. Experts express concerns over AI’s potential to significantly reduce jobs, particularly entry-level white-collar positions. For instance, recent predictions suggest that AI could lead to the elimination of half of all such jobs within the next five years, increasing overall unemployment by 20%. Moreover, it is anticipated that within a year, AI could entirely take over coding tasks traditionally performed by software engineers.

Current insights indicate that industries reliant on routine tasks, such as law and recruitment, may experience substantial job reductions due to automation. As AI technology becomes increasingly capable, professional roles that involve repetitive tasks are at greater risk of being automated. Victor Lazarte, a venture capital expert, highlights this trend, suggesting that businesses are already witnessing AI “fully replacing people” in certain roles.

While New York leads the way in requiring transparency around AI’s impact on layoffs, no other U.S. states have adopted similar policies in their WARN notices as of now. The new regulation may signal a broader push for accountability regarding the intersection of technology and labor. As AI technology continues to evolve, monitoring its influence on the job market will be crucial for lawmakers and industries alike.

This requirement is part of a larger conversation about how technology integrates into workplaces. As automation becomes more prevalent, the implications for workers, employers, and the economic landscape will need careful consideration. As such, the potential for AI to disrupt labor markets is an issue that stakeholders, including policymakers, business leaders, and workers, will need to navigate in the years to come.

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• Entrepreneur: New York Requiring Companies to Reveal If AI Caused Layoffs
• The Wrap: New York to Disclose AI Layoffs in WARN System
• The New York Times: AI in Drug Approvals
• Littler: Governor Hochul Seeks to Expand NY WARN Notice Requirements
• Wikipedia: Artificial Intelligence
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• Google News: AI Layoffs New York