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) For the purposes of this section, the following terms have the meanings given.
subd. 1(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.
subd. 1(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.
subd. 1(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.
subd. 1(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 establishes the defined terms used throughout the bill. The AI definition tracks the NIST-style formulation used in recent federal and state AI legislation. The coverage threshold is set at 50 full-time-equivalent employees within Minnesota. The triggering concept — technological displacement — is defined broadly to include both position elimination and a 25-percent-or-more reduction in total workforce hours within any rolling 12-month period, caused in whole or substantial part by AI or other automated technology.
Employment loss is defined to include not only termination and extended layoff but also conversion of a human-performed function to an automated function, which could capture partial automation even absent any headcount reduction.
subd. 2(a)–(b) 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.
subd. 2(c) 1 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 on covered employers. The structure closely parallels the federal WARN Act but is specifically tailored to AI and automation-driven displacement rather than plant closings or mass layoffs generally. The triggering threshold is 25 employees or 25 percent of the workforce, whichever is less — a significantly lower threshold than the federal WARN Act's 100-employee trigger.
The notice must go to four categories of recipients: affected employees and their unions, the Commissioner of Labor and Industry, local elected officials, and local workforce development boards. Paragraph (c) prescribes the content of the notice, including identification of the AI vendor — a requirement not found in the federal WARN Act that may implicate vendor contracts and procurement confidentiality.
subd. 3(a) 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.
subd. 3(b) 3 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 running from the date notice is provided under subdivision 2. During this period, covered employers must offer affected employees either continued employment or equivalent wages, plus employer-funded participation in a Commissioner-approved retraining or reskilling program. Employees may not be discharged during the transitional period except for just cause.
The just-cause discharge restriction is a significant departure from Minnesota's default at-will employment framework and effectively creates a temporary for-cause termination standard for affected employees during the transition window.
subd. 4(a) 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-adjacent consequences for violations: a five-year bar on state grants, loans, or tax incentives, and inclusion on a public violator registry maintained by the Commissioner of Labor and Industry. While the incentive bar functions as a penalty, the public registry creates a distinct ongoing administrative obligation for the Commissioner.
subd. 5(a) This section may be enforced by the commissioner of labor and industry or the attorney general under section 8.31.
subd. 5(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 enforcement authority and specifies remedies. Enforcement lies with the Commissioner of Labor and Industry or the Attorney General under Minn. Stat. § 8.31. No private right of action is created. The remedies for notice violations include up to 60 days of back pay and benefits per affected employee, plus civil penalties of up to $10,000 per willful violation. The statute preserves other remedies available by law or equity.