New York State has introduced a new requirement for employers to disclose whether artificial intelligence (AI) is a factor in mass layoffs. The update to the Worker Adjustment and Retraining Notification (WARN) system mandates that companies identify technological innovation or automation as a cause for job cuts, including specific technologies like AI. The change, effective since March, is a first-of-its-kind initiative in the U.S., aimed at helping regulators better understand the impact of AI on the labor market.
Under the new policy, employers must complete a mandatory form at least 90 days before a mass layoff or plant closure through the WARN system. The form now includes a checkbox option asking whether the layoffs are due to technological innovation or automation. If employers select this option, they are directed to a second menu where they must specify the exact technology responsible for the job cuts, such as AI or robots.
The initiative is part of broader efforts to monitor and regulate the growing use of AI in the workplace. Regulators hope the data will provide insights into how automation is reshaping the labor market and help develop policies to support displaced workers. With AI continuing to evolve and impact jobs across various sectors, this move signals a growing emphasis on transparency in employment practices.
Supporters of the policy argue that it promotes accountability and provides valuable data for labor market analysis. Critics, however, are concerned about the potential burden on businesses and the privacy implications of requiring detailed reporting on job cuts. As the state implements this new requirement, further developments are expected to shape the landscape of AI-driven workforce changes.