NY Proposal on AI-Related Layoffs Likely a Dud, Attys Say

Labor, Employment and Benefits attorney Sara Schretenthaler Staha was quoted in a Law360 article discussing New York Gov. Kathy Hochul's proposal to require businesses to notify the state if artificial intelligence (AI) is involved in layoffs. Ms. Staha highlighted the challenge of determining whether AI is a direct cause of layoffs or merely a contributing factor, which raises questions about how companies will track this information to meet reporting requirements under the state's Worker Adjustment and Retraining Notification (WARN) Act. She also commented that AI's impact on workforce decisions is typically gradual instead of immediate, pointing out the lag between AI implementation and potential workforce reductions.

"Is it going to be a direct proximal cause that needs to be reported, or is it going to be related to any layoff that is in whole or in part caused by AI?" she said. "...It's often not a 'we started this use of AI, and then the next day we need to lay off a portion of our workforce.'"

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