A-09581
NY · State · USA
NY
USA
● Pending
Proposed Effective Date
2026-01-21
New York Assembly Bill 9581-A — An Act to amend the labor law, in relation to requiring covered businesses to submit annual reports on the impact of artificial intelligence on hiring and the nature of artificial intelligence use
Requires covered businesses (entities doing business in New York with more than 100 employees or that are publicly traded) to submit annual reports to the Department of Labor by March 1 each year on the impact of AI on hiring and the nature of AI use during the prior calendar year. Reports must include employment displacement and creation data attributable to AI, as well as information on AI objectives, human oversight, sensitive data use, and risk reduction measures. The Department of Labor must compile an annual aggregate report and publish it on its website. Non-compliance is subject to a civil penalty of up to $500 per day, with a 90-day cure period that may result in waiver or reduction of penalties.
Summary

Requires covered businesses (entities doing business in New York with more than 100 employees or that are publicly traded) to submit annual reports to the Department of Labor by March 1 each year on the impact of AI on hiring and the nature of AI use during the prior calendar year. Reports must include employment displacement and creation data attributable to AI, as well as information on AI objectives, human oversight, sensitive data use, and risk reduction measures. The Department of Labor must compile an annual aggregate report and publish it on its website. Non-compliance is subject to a civil penalty of up to $500 per day, with a 90-day cure period that may result in waiver or reduction of penalties.

Enforcement & Penalties
Enforcement Authority
Department of Labor, through the Commissioner. Enforcement is agency-initiated. Upon notice of a violation, the covered business has ninety days to cure the violation to the satisfaction of the Commissioner. If cured, 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 the covered business remains in violation of the reporting requirements. If the violation is cured within a 90-day cure period to the Commissioner's satisfaction, the Commissioner shall waive or reduce 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 3 obligations · click obligation ID to open requirement page
R-02 Regulatory Disclosure & Submissions · R-02.1 · Deployer · Employment
Labor Law § 201-j(2)
Plain Language
Every covered business must file an annual report with the Department of Labor by March 1 covering AI use in the prior calendar year. The report has two components: (1) employment impact data, including estimates of employees displaced, hired, or positions eliminated due to AI; and (2) operational AI usage data, including objectives of AI use, human oversight measures, frequency and duration of use, sensitive personal data handling, and risk reduction measures. The enumerated items are a floor — the statute uses 'including but not limited to,' and the Department may develop additional reporting requirements under subdivision 3. The 90-day cure period in subdivision 5(b) operates as a safe harbor: if the Commissioner notifies a covered business of a violation and the business cures within 90 days to the Commissioner's satisfaction, penalties shall be waived or reduced.
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 reports. The Department also has discretionary authority to develop additional AI-related reporting requirements beyond those enumerated in subdivision 2. This is a government administrative obligation, not a direct compliance obligation on covered businesses, though the Department's exercise of its rulemaking authority could expand the scope of business reporting obligations over time.
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 compile the individual business reports into an aggregate annual report on AI's impact on hiring and AI usage statewide. The 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 present aggregate data broken down by employment sector, geographic location, and business size. This is a government-facing obligation and does not impose additional compliance obligations 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.