Regulon — NY-A-09581 · NY A 9581-A (AI Employment Impact Reporting)

Summary

Requires covered businesses — entities doing business in New York that employ more than 100 people or are publicly traded — to submit annual reports to the Department of Labor by March 1 on the impact of AI on hiring and the nature of their AI use for the preceding calendar year. Reports must include employment displacement and hiring data attributable to AI, descriptions of AI objectives, human oversight information, sensitive data use, and risk reduction measures. The Department of Labor must compile and publicly publish an aggregate annual report analyzing AI employment impacts by sector, geography, and business size. Failure to report subjects a covered business to civil penalties of up to $500 per day, with a 90-day cure period.

Enforcement & Penalties

Enforcement Authority

The Commissioner of Labor enforces reporting requirements. Enforcement is agency-initiated. Upon notice of a violation, the covered business has a 90-day cure period to resolve the violation to the commissioner's satisfaction. If cured within 90 days, the commissioner shall waive or reduce applicable penalties. No private right of action is created.

Penalties

Civil penalty of not more than $500 per day for each day a covered business remains in violation of the reporting requirements. If the violation is cured within 90 days of notice, the commissioner shall waive or reduce the applicable penalties.

Who Is Covered

"covered business" shall mean a business entity doing business in the state and: (a) employs more than one hundred people; or (b) is a publicly traded entity.

Compliance Obligations 4 obligations · click obligation ID to open requirement page

R-02 Regulatory Disclosure & Submissions · R-02.1 · Deployer · Employment

Labor Law § 201-j(2)(a)-(b)

Plain Language

By March 1 of each year, every covered business must file a report with the Department of Labor covering the preceding calendar year. The report has two parts: (1) employment impact data, including estimates of employees displaced, hired, or positions eliminated due in whole or part to AI use; and (2) information on the nature of AI usage, including objectives, human oversight, frequency and duration, use involving sensitive personal data and related protections, and risk reduction measures. The enumerated items are floors — the report must include but is not limited to these categories. Failure to report triggers civil penalties of up to $500 per day, subject to a 90-day cure period upon notice of violation.

Statutory Text

2. Reporting requirement. On or before March first of every year, a covered business shall report to the department regarding the impact of artificial intelligence on its hiring and the nature of its artificial intelligence use in the calendar year ending the preceding December thirty-first. Such report shall include: (a) Employment data, including but not limited to: (i) An estimate of the number of employees displaced, or whose hours have been reduced, due in full or in part to use of artificial intelligence; (ii) An estimate of the number of employees hired, or whose hours have been increased, due in full or in part to use of artificial intelligence; and (iii) An estimate of the number of positions previously filled that the covered business has decided not to fill due in full or in part to use of artificial intelligence; and (b) Information on the nature of artificial intelligence usage, including but not limited to: (i) Descriptions of the objectives of the use of artificial intelligence; (ii) Information regarding any human oversight of artificial intelligence; (iii) Information on the frequency and length of use of artificial intelligence; (iv) Information on any use of artificial intelligence in relation to sensitive personal data, including storage and access protections related to use of artificial intelligence in relation to such personal data; and (v) Measures in place for oversight, risk reduction, or other protections related to use of artificial intelligence.

Other · Government · Employment

Labor Law § 201-j(3)

Plain Language

The Department of Labor must create standardized forms and submission processes for the annual AI impact reports. The department is also authorized to develop additional reporting requirements related to AI's hiring and business impacts. This provision directs the government agency to build the reporting infrastructure; it does not impose a new compliance obligation on covered businesses beyond the reporting obligation in subdivision 2.

Statutory Text

3. Responsibilities of the department. The department shall develop standard reporting forms and processes for covered businesses to submit the reports required pursuant to subdivision two of this section. The department may develop additional reporting requirements related to the hiring and business impacts of utilization of artificial intelligence by covered businesses.

Other · Government · Employment

Labor Law § 201-j(4)(a)-(c)

Plain Language

The Department of Labor must review all covered business reports and prepare its own aggregate annual report analyzing AI's impact on hiring and AI usage patterns statewide. This report must be submitted to the governor and legislative leaders within 120 days of the March 1 business reporting deadline (i.e., by approximately July 1) and simultaneously published on the department's website. The report must include aggregate employment impact data analyzed by sector, geography, and business size. This provision imposes obligations only on the department, not on covered businesses.

Statutory Text

4. Annual report. (a) The department shall review the reports submitted by covered businesses pursuant to subdivision two of this section and shall prepare an annual report on the impact of artificial intelligence on hiring and the nature of artificial intelligence usage in the state based on the department's review of such reports submitted pursuant to subdivision two of this section. (b) The department shall submit the report required pursuant to paragraph (a) of this subdivision to the governor, the temporary president of the senate, the minority leader of the senate, the speaker of the assembly, and the minority leader of the assembly within one hundred twenty days of the covered business reporting deadline established pursuant to subdivision two of this section. Such report shall be made publicly available on the department's website at the same time as such report is submitted to the governor and legislature. (c) The report required pursuant to paragraph (a) of this subdivision shall include, but not be limited to, presentation of aggregate data regarding employment impacts, objectives, and implementation of artificial intelligence by covered businesses, including analysis of such impacts by employment sector, geographic location, and business size.

Other · Employment

Labor Law § 201-j(5)(a)-(b)

Plain Language

Covered businesses that fail to submit the required annual AI impact report face civil penalties of up to $500 per day of non-compliance. However, upon receiving notice of a violation, a business has 90 days to cure. If the commissioner is satisfied the violation has been resolved within that period, penalties must be waived or reduced. This provision establishes enforcement consequences but creates no independent compliance obligation beyond the reporting requirement it enforces.

Statutory Text

5. Enforcement. (a) A covered business who fails to report pursuant to the requirements of this section shall be subject to a civil penalty of not more than five hundred dollars for each day such covered business remains in violation of such reporting requirements. (b) Upon notice of a violation of this section, a covered business shall have ninety days to resolve such violation to the satisfaction of the commissioner. If the commissioner is satisfied that the violation has been cured within the ninety-day period, the commissioner shall waive or reduce the applicable penalties under this subdivision.