An unprecedented law in New York will require employers to disclose whether or not artificial intelligence was the reason for an employee’s layoff.
According to Bloomberg News, the new rule, which took effect in March, is an update to the state’s Worker Adjustment and Retraining Notification (WARN) system.
Now, employers will have to check off a box indicating if “technological innovation or automation” caused job cuts.
If so, they must specify the technology that played a role in the layoffs, such as AI or robotics.
Growing focus on how AI impacts the workforce
Governor Kathy Hochul proposed the change back in January in her State of the State address.
So far, no employers have reported tech as the reason for layoffs.
However, the new transparency is expected to help keep track of how automation and robotics will impact the workforce in the years to come.
“It signals growing concern among regulators,” one CEO told Bloomberg.
Still, other states have yet to adopt similar rules.
Concerns about AI fueling job loss are growing
There has been a major spike in concerns about AI driving job losses.
In recent months, Anthropic CEO Dario Amodei predicted AI would eliminate half of all entry-level white-collar jobs in 5 years.
He also expected it would wipe out all software coding jobs in one.
Victor Lazarte, a General Partner at Benchmark (a venture capital firm), said AI is already replacing workers in law and recruitment, doing jobs that would’ve typically been done by humans in the past.
The news hits TikTok
On TikTok, influencers discussed the new disclosure rules in New York.
TikToker AEyeSpy (@aeyespybywinsome) shared the news with her viewers. She asked if others believed companies should have to disclose whenever they lay off workers because of tech advancements.
@aeyespybywinsome Should bosses have to tell you when AI is taking your job? #NYC #aijobs ♬ original sound – AEyeSpy
In the comments section, many voiced concerns about AI’s impact on the workforce and agreed there should be rules and regulations.
“I not only think it should be required, but I also think EVERY single company that uses AI should have to contribute to a universal income pool, like how most employers do for unemployment,” one user wrote.
“The more AI that is used the more funding for universal income. Then to really incentivize the big corporations all money that is ‘saved’ from laying people off by employing AI should go to universal income, that way companies have to choose between paying for human work, or non human work but it will cost the same,” the viewer continued.
Others argued that more should be done to ensure resources are properly distributed when AI starts taking workers’ wages.
“When does the AI tax come about?” one commenter asked. “Because the all of the local, state and federal tax losses in payroll tax isn’t going to be great for these municipalities and they’ll squeeze those lost tax dollars out of the public at large somehow.”
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