New York Mandates Disclosure of AI-Driven Layoffs by Companies

New York is pioneering an initiative requiring companies to disclose whether artificial intelligence (AI) is a factor in their layoffs, as part of the Worker Adjustment and Retraining Notification (WARN) system. This change, effective since March, makes New York the first U.S. state to implement such disclosure, helping regulators analyze AI’s impact on employment. Employers now must indicate if “technological innovation or automation” has caused job cuts and specify the technology involved, such as AI or robots, if applicable. Governor Kathy Hochul introduced this proposal in her January 2025 address. Currently, no companies have reported AI-related layoffs. Experts express concerns regarding AI’s potential to significantly affect the job market; forecasts suggest that automation might eliminate half of entry-level white-collar jobs in five years and take over various professions, highlighting a growing awareness and unease among regulators and analysts regarding AI’s effects on employment.

Source link