AI Behind Layoffs? New York Forces Employers to Reveal Truth

In a landmark move, New York State has introduced a new requirement for employers: when filing notices for large-scale layoffs, they must now disclose whether artificial intelligence (AI) played a role in job eliminations. This groundbreaking update to state labor policy reflects growing concerns over the rapid rise of automation and its impact on the workforce

A Step Toward Transparency in the AI Era

The new reporting rule is part of amendments made to the Worker Adjustment and Retraining Notification (WARN) Act in New York. The WARN Act mandates that companies notify employees and government officials in advance of large layoffs or plant closures. But as of June 2025, businesses will also have to specify whether AI or automation contributed to the job losses.

This update is one of the first of its kind in the United States and could set a precedent for other states to follow. New York’s move reflects a growing understanding among lawmakers that AI is not just a tech issue — it’s a labor and social policy issue as well.

According to the New York State Department of Labor, the goal of this change is to “track how technology is impacting the labor force” and to prepare for future shifts in employment caused by automation.
Read more on the NY State WARN Act update

Why This Change Matters

As AI becomes more advanced, companies across industries are using it to replace human roles in customer service, logistics, data entry, legal services, and even journalism. While automation has been around for years, the arrival of generative AI — like OpenAI’s ChatGPT and Google’s Gemini — has rapidly increased how many white-collar jobs could be affected.

A 2023 report by Goldman Sachs estimated that 300 million jobs globally could be impacted by AI over the next decade. In the U.S. alone, millions of roles may be restructured or eliminated due to automation. New York’s new rule could offer much-needed insight into how this trend is unfolding in real-time.

Employers Must Provide AI Disclosure

Under the revised law, companies with 50 or more employees must notify the state 90 days before a mass layoff, plant closing, or relocation. Now, they must also include:

• Whether AI or automated systems contributed to the decision
• The specific tasks or departments affected by the technology
• If reskilling or retraining options were offered to impacted workers
  This level of transparency is designed to give the state and workers more data on the effects of AI — and to promote more responsible tech adoption by employers.

Lawmakers and Labor Advocates Applaud the Move

New York State Senator Jessica Ramos, a key voice in labor rights, praised the update:

“We are entering an era where machines are replacing workers in ways we haven’t seen before. It is crucial for the state to understand how automation is affecting people’s lives and livelihoods.”
Labor unions have also expressed support. The New York AFL-CIO said the change allows workers to better understand the forces affecting their jobs — and to demand policies that support displaced employees.

Business Leaders React with Caution

However, some business groups worry the new rule may increase administrative burdens or lead to public backlash. The Business Council of New York State released a statement saying:

“While we understand the concern around AI-related layoffs, we urge the state to implement this rule carefully to avoid unnecessary confusion for employers.”
Companies may fear that admitting AI played a role in job cuts could damage their public image or lead to reputational risks. But experts argue that transparency is critical if we are to manage the societal effects of AI responsibly.

Could Other States Follow New York’s Lead?

New York’s bold move may soon influence policy nationwide. As concerns over AI continue to grow — including its impact on employment, bias in decision-making, and lack of regulation — other states may adopt similar reporting standards. California, Massachusetts, and Illinois have already introduced various AI bills focused on consumer data protection, algorithmic fairness, and workplace monitoring.

Now, labor transparency laws could be the next trend. Some experts suggest the federal government may eventually need to step in with national standards to regulate the use of AI in employment decisions.

A Wake-Up Call for Companies and Workers

For employers, this new regulation is a reminder that AI adoption must be balanced with social responsibility. Companies are encouraged to create reskilling programs, ensure fair treatment of workers, and implement AI ethically. For employees, the rule highlights the importance of staying updated with new technologies. As AI continues to reshape the job market, continuous learning, digital literacy, and adaptability will be key skills for long-term career success.

The Future of Work Is Now

New York State’s requirement that employers report AI-related layoffs is more than a policy tweak — it’s a warning sign of the massive changes coming to the world of work. It underscores how government, business, and society must work together to ensure that technology supports people, not just profits. As AI continues to evolve, lawmakers are racing to ensure that no worker is left behind.
Learn more about AI’s impact on jobs and automation trends

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