New York Becomes First State to Require Employers to Disclose AI’s Role in Layoffs

New York Requires AI Disclosure in Workforce Reductions

New York has set a precedent by becoming the first US state to require employers to disclose whether artificial intelligence played a part in workforce reductions. An update to the state's Worker Adjustment and Retraining Notification (WARN) system now mandates companies to report if “technological innovation or automation” contributed to mass layoffs or plant closures. This includes specifying the exact technologies involved, such as AI or robotics.

Employers must submit the WARN form at least 90 days before planned layoffs. The updated form includes a checkbox asking if automation influenced the job cuts. If selected, companies are required to identify the technology responsible. This change was proposed by Governor Kathy Hochul during her State of the State address.

Tracking Automation Trends Through AI Disclosure

This update makes New York the first state in the US to require disclosure of automation’s role in layoffs. The goal is to provide regulators with clearer data on how automation impacts employment trends. While the law does not restrict AI-related layoffs, it offers early insight into automation's effects on jobs.

So far, no companies filing WARN notices in New York have reported AI as a factor in layoffs.

Expert Warnings Highlight the Workforce Impact of Technology

Although no other states have introduced similar laws, experts see New York’s move as a sign of growing concern about AI’s impact on the workforce. For example, Anthropic CEO Dario Amodei recently warned that AI could eliminate half of all entry-level white-collar jobs within five years and increase unemployment rates by 20%. He also predicted that AI would take over all coding tasks for software engineers within a year.

As AI adoption grows across industries, New York’s disclosure requirement could provide valuable early data on how automation reshapes the labor market.

What HR Professionals Should Know

• Prepare to integrate new reporting requirements into your layoff planning processes if operating in New York.
• Stay informed about the specific technologies your company uses that may contribute to workforce changes.
• Monitor evolving legislation in other states, as this could signal a broader trend toward transparency on automation’s role in layoffs.

For HR professionals interested in understanding AI and its implications in the workplace, Complete AI Training offers courses that cover AI fundamentals and automation trends.