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New York has become the first US state to require employers to disclose whether artificial intelligence played a role in workforce reductions.
A recent update to New York’s Worker Adjustment and Retraining Notification (WARN) system mandates companies to report if “technological innovation or automation” contributed to mass layoffs or plant closures. This includes identifying the specific technologies involved, such as AI or robotics.
Under the regulation, employers must complete the WARN form at least 90 days ahead of planned layoffs. The form now includes a checkbox asking if automation contributed to the job cuts. If selected, companies are required to name the technology responsible.
The change was proposed by Governor Kathy Hochul during her State of the State address.
AI-disclosure aimed at tracking automation trends
The addition to the state’s Worker Adjustment and Retraining Notification (WARN) system makes New York the first state in the US to mandate such disclosure.
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The state aims to give regulators a clearer view of automation’s role in employment trends, according to Entrepreneur. While the measure stops short of limiting AI-related layoffs, it provides early insight into how automation is affecting jobs.
As of now, no companies filing WARN notices in New York have reported AI as a cause for layoffs.
Expert warnings drive urgency on tech's workforce impact
Although no other states have enacted similar laws, some experts believe New York’s decision may be a signal of rising concern over AI’s labor implications.
Recently, Anthropic CEO Dario Amodei warned that AI could eliminate half of all entry-level white-collar jobs within five years and push unemployment rates up by 20%. He also predicted that AI would take over all coding tasks for software engineers within a year.
As AI adoption accelerates across industries, New York’s move could generate early data on how automation reshapes the workforce to offer an early look at how automation reshapes the labor market.
