- On January 14, 2025, Governor Hochul proposed new protections for workers displaced by AI
- Employers in New York would be required to disclose AI's role in mass layoffs under the NY WARN Act
- The New York State Department of Labor (DOL) will oversee and enforce this new disclosure rule
- No official implementation timeline has been announced by the DOL
- Labor Commissioner Roberta Reardon acknowledged difficulty in defining AI-related layoffs
- Hochul noted AI can increase business efficiency but warned of risks to workers
- Risks include job loss, wage stagnation, reduced hiring, and skill obsolescence
- The goal of the proposal is to promote transparency and protect workers
- Employers must include AI-related causes in WARN notices if applicable
- Scope details are still unclear but expected to expand existing NY WARN Act duties
- NY WARN Act is stricter than the federal version
- NY WARN applies to companies with 50 or more employees
- It requires 90-day notice before mass layoffs, compared to 60 days federally
- Notices must go to affected employees, reps, DOL, and local officials
- If the AI proposal is enacted, these notices must also state AI involvement
- Employers are advised to assess how AI impacts headcount and morale
- Legal and HR leaders should understand where and how AI is deployed in operations
- Employers should consult legal counsel for compliance with the new obligations
Source: https://natlawreview.com/article/new-york-proposal-protect-workers-displaced-artificial-intelligence