AI is causing businesses to constantly reevaluate the way they do things, as new tools and systems powered by AI are introduced to the world. However, major shifts in technology always solicit the question, "How will this impact jobs?"It happened as computers became a more commonplace object, and it's happening again now with AI. With that said, here is what employers should know about AI-driven layoffs in New York.
AI-Driven Layoffs in New York State
As of today, there are no laws currently in effect that specifically impact New York employers when it comes to AI-Driven layoffs.
However, there are two state bills that are currently in the Senate Committee that would amend current laws regarding layoffs. The first would amend the current New York State Worker Adjustment and Retraining Notification (WARN) Act, applying to AI-driven mass layoffs.
The second would enact what is currently being referred to as the New York Automation Displacement Protection Act, which would impact all employers, covering any employees whose work is being replaced by artificial intelligence (AI).
And while it does not yet include any special provisions for AI-driven mass layoffs, covered employers must still comply with the New York State WARN Act in the event an AI-driven mass layoff meets the current requirements of the law.
New York State WARN Act
The WARN Act requires employers with 50 or more full-time employees to meet certain requirements and follow certain procedures for mass layoffs.
Specifically, events that include:
- Closings that impact at least 25 employees
- Mass layoffs of at least 25 full-time employees, when the number of employees exceeds 33% of the current total
- Mass layoffs of at least 250 full-time employees
Some other relocations and reductions in work hours are also covered.
The law requires these employers to provide employees with a notice 90 days prior to the event. Employers must also provide notices to the following entities:
- Any employee representatives
- The New York State Department of Labor (NYSDOL)
- The Local Workforce Development Board (LWDB)
- The chief elected official of the unit or units of local government where the business is located
- The school district or districts where the business is located
- Each locality that provides police, firefighting, emergency medical or ambulance services, or other emergency services, to the locale where the business is located
New York Artificial Intelligence Workforce Impact Transparency Act
While not yet in effect, the New York Artificial Intelligence Workforce Impact Transparency Act requires WARN notices in New York to include a statement as to whether or not the event is due to the introduction, expansion, or adoption of AI systems, automated technologies, or other machine-based processes. It does not matter if it is wholly or partly due to the introduction, expansion, or adoption of these technologies.
The notice must also include the following information:
- The estimated percentage of positions affected
- A brief description of the technology or process that led to the employment loss
While not yet in effect, if passed, the law would go into effect 180 days after the date it becomes law.
New York Automation Displacement Protection Act
The New York Automation Displacement Protection Act would require covered employers to provide notice to specific impacted employees prior to replacing human work with artificial intelligence or other automated systems (technological displacement). This law is ALSO not yet in effect.
The law would specifically require employers with 50 or more full-time employees to provide affected employees with written notice 90 days prior to any technological displacement, if the displacement will impact:
- 25 full-time employees or more
- 25% of the workforce
An affected employee is someone who is terminated or laid off for more than six months, or whose work hours are reduced by at least 25%.
Notices must also be sent to:
- Any employee representatives
- The New York State Department of Labor (NYSDOL)
- The Local Workforce Development Board (LWDB)
- The chief elected official of the unit or units of local government where the business is located
Frequently Asked Questions
Is it legal to lay off employees for AI in New York?
In short, yes. Employers may lay off employees in New York due to AI. However, there are general rules around layoffs that New York employers must follow, as well as potential amendments and new laws that would add rules regarding AI-driven layoffs.
Are there any laws currently in effect that specifically regulate AI-driven layoffs in New York?
No. As of now, there are no laws in effect that specifically address AI-driven layoffs. However, existing laws, like the New York State WARN Act, may still apply depending on the circumstances.
What laws should New York employers currently follow when conducting layoffs involving AI?
Employers must comply with the New York State WARN Act if the layoff meets certain thresholds, regardless of whether AI is the cause.
When does the New York State WARN Act apply to layoffs?
The WARN Act applies when a business closing affects at least 25 employees, a mass layoff affects at least 25 full-time employees and at least 33% of the workforce, or a mass layoff affects 250 or more full-time employees.
Who must receive New York State WARN Act notices?
Employers must notify affected employees (or their representatives), the New York State Department of Labor, the Local Workforce Development Board (LWDB), any local government officials, school districts, and emergency service providers where the business is located.
Get Help with New York Compliance and HR Tasks
With AI causing rapid changes in work processes, compliance, and HR tasks, many businesses may feel overwhelmed or left lacking support.
Reaching out to a New York HR outsourcing company can be of great assistance.
To learn more about how EBC can help employers with compliance and posting requirements, contact us today.
