New York has implemented a novel change to its Worker Adjustment and Retraining Notification (WARN) system, requiring companies to disclose if artificial intelligence is a factor in their layoffs. This regulatory response aims to provide insights into the impact of AI on the workforce. Despite the implementation in March, no businesses have reported AI-related layoffs yet. Experts say this move indicates growing scrutiny over AI’s role in job displacement, especially as predictions suggest significant reduction in entry-level positions due to AI advancements.
New York is the first state in the U.S. to add a disclosure asking companies if AI is the reason for their layoffs, helping regulators understand AI's labor market effects.
Governor Kathy Hochul proposed the change to the Worker Adjustment and Retraining Notification system in her January 2025 State of the State address, addressing concerns over AI's impact on jobs.
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