New York has become the first US state to require employers to disclose whether AI played a role in workforce reductions

New York has become the first state in the U.S. to require employers to say whether artificial intelligence or automation played a role in layoffs.

If your company is planning a mass layoff or plant closure in New York, you already know you must file a WARN notice at least 90 days in advance. What’s new is that the WARN form now asks a direct question: did technology, automation, or AI contribute to these job cuts? If the answer is yes, employers must name the specific technology involved, such as AI systems or robotics.

This change came directly from Governor Kathy Hochul and reflects growing concern about how automation is reshaping jobs. Importantly, this rule does not stop companies from using AI or from laying off workers. It also does not penalize employers for AI-driven decisions. What it does is create transparency and data for regulators to better understand how technology is affecting employment.

So far, no company filing a WARN notice in New York has checked the box saying AI caused the layoffs. But experts believe that will change as AI adoption accelerates. Tech leaders are already publicly warning that AI could significantly reduce certain types of jobs, especially entry-level white-collar roles, in the coming years.

What this means for employer leadership

For now, this is about disclosure, not restriction. But disclosure is often the first step toward regulation. New York is signaling that it wants visibility into AI’s impact on jobs before deciding what comes next.

Practically, this means companies should start documenting how workforce decisions are made, especially when AI tools are involved. If automation is part of a reduction strategy, leadership should be ready to explain it clearly, accurately, and consistently.

Bottom line for leaders

This doesn’t ban AI. It doesn’t block layoffs. But it puts AI-related workforce decisions on the record. Smart employers will treat this as an early warning and start building stronger governance, documentation, and communication around how technology impacts their workforce.