New York State now asks employers to report whether mass layoffs are AI-related

New York has become the first state in the US to begin asking employers to report when artificial intelligence contributes to large-scale job cuts, integrating this requirement into the existing Worker Reduction and Retraining Warning (WARN) system, Bloomberg reports.

Under the new rules, companies planning mass layoffs or plant closures must indicate whether "technological innovation or automation" is the reason for the layoffs. If an employer chooses this option, an additional field appears in which they must indicate the specific technology – for example, software with AI elements or robotic equipment. Although the disclosure is voluntary, it is the first formal step towards tracking the impact of AI on the labor market.

"A lot of times these soft measures go into place as a precursor for future ‘harder’ measures," said Dave Walton, co-chair of the AI, data and analytics team at law firm Fisher Phillips. So far, no WARN filing in New York has cited AI as a reason for the cuts, and experts caution that self-reported data may be incomplete.

New York Governor Katie Gokul's office sees the WARN change as part of the state's broader AI policy, which also includes grants for tech entrepreneurs and increased funding for research. "We are committed to understanding the real-world impact of data-driven AI and providing the necessary support and retraining for workers who have lost their jobs," a spokesperson for the governor's office said.

However, the state initiative could run into a federal hurdle. A provision in the House Republican tax bill would bar states from enacting new rules to regulate AI for ten years.