In early 2025, New York quietly added a new question to its WARN Act filing system: did AI or automation contribute to these layoffs? More than a year later, not one of the 160-plus companies that filed a notice has said yes. That’s either genuinely good news — or a sign that the reporting system isn’t working the way it was intended.
How the disclosure works
Governor Hochul directed the state’s Department of Labor to start collecting this data in January 2025, with the change going live in March. When filing a WARN notice, employers now see a checkbox asking whether “technological innovation or automation” played a role in the layoffs. If checked, they’re asked to name the specific technology.
The problem is that New York’s WARN Act statute was never actually amended to require this — it was just added to the form. That leaves employers with real uncertainty: Is this mandatory? What counts as “technological innovation or automation”? Does AI need to be the sole cause of the layoffs, or just a contributing factor? Without answers, most employers are probably leaving the box unchecked regardless.
What might be coming
Two bills in the state legislature would go further:
One would require larger employers — those with 100 or more employees, or any publicly traded company — to submit annual reports to the state on how AI is affecting hiring, workforce reductions, and unfilled positions. It would also require disclosure of how AI is being overseen and how often it’s being used.
The other, called the “Automation Displacement Protection Act,” would require employers with 50 or more full-time employees to give advance notice any time AI or automated technology eliminates positions or cuts workforce hours by 25% or more over a 12-month period. Affected employees would be entitled to a 90-day transition period with either continued pay or access to retraining. Employers who don’t comply could lose eligibility for state grants, loans, and tax incentives for five years — and face civil penalties up to $10,000 per day for willful violations.
Neither bill is law yet, but the direction of travel is clear. New York has been at the front of AI-related workplace regulation, and other states are paying attention.
Employers — especially those operating in multiple states — should be monitoring these developments closely and thinking now about how they would track and report AI’s role in workforce decisions if required to do so.
FOREWORK BENEFIT: Federal and state WARN Act obligations are extremely tricky, even without a AI component. Employers who are considering shutting down locations, departments, or conducting a mass layoff of employees form multiple branches and divisions should consul their designated Forework human resources representative.