How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
subd. 1(a)–(e) For the purposes of this section, the following terms have the meanings given. (b) "Artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in the system's level of autonomy and that can, for explicit or implicit objectives, infer from the input the system receives how to generate outputs that can influence physical or virtual environments.Minn. Stat. § 181.9937, subd. 1(b)" means an engineered or machine-based system that varies in the system's level of autonomy and that can, for explicit or implicit objectives, infer from the input the system receives how to generate outputs that can influence physical or virtual environments. (c) "Covered employerCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c)" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota. (d) "Employment lossEmployment loss"Employment loss" includes any termination, layoff exceeding six months, reduction in work hours of 50 percent or more during each month of any six-month period, or conversion of a human-performed function to an automated function.Minn. Stat. § 181.9937, subd. 1(d)" includes any termination, layoff exceeding six months, reduction in work hours of 50 percent or more during each month of any six-month period, or conversion of a human-performed function to an automated function. (e) "Technological displacementTechnological displacement"Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to 25 percent or more of total workforce time within any 12-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Minn. Stat. § 181.9937, subd. 1(e)" means the elimination of employment positions, or a reduction in hours equivalent to 25 percent or more of total workforce time within any 12-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in the system's level of autonomy and that can, for explicit or implicit objectives, infer from the input the system receives how to generate outputs that can influence physical or virtual environments.Minn. Stat. § 181.9937, subd. 1(b) system or other automated technology.
Subdivision 1 defines four key terms for the section. Artificial intelligence uses the NIST-derived definition covering any engineered or machine-based system that generates outputs from inferred inputs. Covered employer sets the size threshold at 50 or more FTE in Minnesota. Employment loss is broadly defined to include not only terminations and layoffs but also significant hour reductions and conversion of human functions to automated functions. Technological displacement is the triggering event for the notice and transitional-employment obligations — elimination of positions or a 25-percent-or-more reduction in total workforce time within 12 months caused in whole or substantial part by AI or automation.
subd. 2(a)–(c) 1 A covered employerCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c) must provide a minimum of 90 days advance written notice prior to any technological displacementTechnological displacement"Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to 25 percent or more of total workforce time within any 12-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Minn. Stat. § 181.9937, subd. 1(e) affecting (1) 25 or more employees, or (2) 25 percent of the employer's workforce, whichever is less. (b) Notice under paragraph (a) must be provided to: (1) all affected employees and any employee organization representing the affected employees; (2) the commissioner of labor and industry; (3) the chief elected official of each locality where an affected facility is located; and (4) the local workforce development board for any area with an affected facility. (c) A notice under paragraph (a) must include a description of: (1) the functions to be automated; (2) the number, classification, and location of affected employees; (3) the anticipated date of technological displacementTechnological displacement"Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to 25 percent or more of total workforce time within any 12-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Minn. Stat. § 181.9937, subd. 1(e); (4) any available retraining or reassignment programs; and (5) the identity of any vendor or contractor supplying the artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in the system's level of autonomy and that can, for explicit or implicit objectives, infer from the input the system receives how to generate outputs that can influence physical or virtual environments.Minn. Stat. § 181.9937, subd. 1(b) system.
Subdivision 2 imposes the bill's core advance-notice obligation, requiring covered employers to provide at least 90 days' written notice before any technological displacement affecting 25 or more employees or 25 percent of the workforce (whichever is less). The notice must be delivered to four categories of recipients: affected employees and their unions, the Commissioner of Labor and Industry, local elected officials, and the local workforce development board.
The required content of the notice is detailed: the employer must describe the functions being automated, the number and location of affected employees, the anticipated displacement date, any available retraining or reassignment programs, and the identity of the AI vendor or contractor. This content requirement is modeled on WARN Act notices but is specifically adapted to AI and automation displacement, including the novel requirement to identify the AI system vendor.
subd. 3(a)–(b) 2 Each employee affected by a technological displacementTechnological displacement"Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to 25 percent or more of total workforce time within any 12-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Minn. Stat. § 181.9937, subd. 1(e) is entitled to a transitional employment period of 90 days from the date notice was provided under subdivision 2, during which the covered employerCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c) must offer each affected employee: (1) continued employment or equivalent wages; and (2) participation, at the employer's expense, in a recognized retraining or reskilling program approved by the commissioner of labor and industry. (b) A covered employerCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c) must not discharge an employee during that employee's transitional employment period except for just cause.
Subdivision 3 creates a mandatory 90-day transitional employment period for all employees affected by a technological displacement. During this period, the covered employer must offer each affected employee either continued employment or equivalent wages, plus participation in a commissioner-approved retraining or reskilling program at the employer's expense. The employer may not discharge an employee during the transitional period except for just cause.
This is a novel obligation without direct precedent in federal WARN Act law, which requires only advance notice but not continued employment or employer-funded retraining. The just-cause discharge restriction during the transitional period adds a heightened employment protection that overrides at-will employment during the 90-day window.
subd. 4(a) 3 Any covered employerCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c) that fails to comply with the requirements of this section is ineligible for state grants, loans, or tax incentives for five years following the finding of a violation.
subd. 4(b) The commissioner of labor and industry must maintain a public registry of covered employersCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c) the commissioner has found to have violated this section.
Subdivision 4 creates two enforcement mechanisms: a five-year disqualification from state grants, loans, and tax incentives for any covered employer found to have violated the section, and a requirement that the Commissioner of Labor and Industry maintain a public registry of violators. The incentive disqualification is a significant economic deterrent beyond direct monetary penalties, and the public registry functions as a reputational sanction.
subd. 5(a)–(b) This section may be enforced by the commissioner of labor and industry or the attorney general under section 8.31. (b) In addition to other remedies available by law or equity, a covered employerCovered employer"Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota.Minn. Stat. § 181.9937, subd. 1(c) that violates subdivision 2: (1) is liable to each affected employee for up to 60 days of back pay and benefits; and (2) may be assessed a civil penalty of up to $10,000 for each willful violation.
Subdivision 5 designates the Commissioner of Labor and Industry and the Attorney General (under Minn. Stat. § 8.31) as enforcement authorities. Specific remedies for violations of the notice requirement include up to 60 days of back pay and benefits per affected employee and civil penalties of up to $10,000 per willful violation. Other remedies available by law or equity are preserved.