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.
(1) "Covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1)" means any business enterprise that employs fifty or more full-time employees in the state.
(2) "Artificial intelligenceArtificial intelligence"Artificial intelligence" means the same as defined in section seventeen hundred of the general business law.Labor Law § 863(2)" means the same as defined in section seventeen hundred of the general business law.
(3) "Technological displacementTechnological displacement"Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to twenty-five percent or more of total workforce time, within any twelve-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Labor Law § 863(3)" means the elimination of employment positions, or a reduction in hours equivalent to twenty-five percent or more of total workforce time, within any twelve-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligenceArtificial intelligence"Artificial intelligence" means the same as defined in section seventeen hundred of the general business law.Labor Law § 863(2) system or other automated technology.
Section 863 establishes the three defined terms that govern the scope of the Automation Displacement Protection Act. Covered employer is limited to business enterprises with 50 or more full-time employees in New York — smaller employers are excluded entirely. Technological displacement is defined broadly to include both outright position elimination and significant hour reductions (25% or more of total workforce time within any 12-month period) caused in whole or substantial part by AI or automated technology. The definition of artificial intelligence cross-references existing New York General Business Law § 1700.
(1) 1 A covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1) shall provide no fewer than ninety 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 twenty-five percent or more of total workforce time, within any twelve-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Labor Law § 863(3) affecting twenty-five or more employees, or twenty-five percent of the workforce, whichever is less.
(2)(a)–(d) 1 Notice under subdivision one of this section shall be provided to: (a) all affected employees and any employee organization representing them; (b) the commissioner; (c) the chief elected official of each locality where the affected facility is located; and (d) the local workforce development board.
(3)(a)–(e) 1 The notice under subdivision one of this section shall describe: (a) the functions to be automated; (b) the number, classification, and location of affected employees; (c) the anticipated date of displacement; (d) available retraining or reassignment programs; and (e) the identity of any vendor or contractor supplying the artificial intelligenceArtificial intelligence"Artificial intelligence" means the same as defined in section seventeen hundred of the general business law.Labor Law § 863(2) system.
Section 863-a creates 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% of the workforce, whichever threshold is lower. The notice must reach four categories of recipients: affected employees and their unions, the Commissioner of Labor, local elected officials, and the local workforce development board. The required content is detailed and includes the functions to be automated, number and classification of affected employees, the anticipated displacement date, available retraining or reassignment programs, and the identity of any AI vendor or contractor involved.
The structure closely parallels federal and state WARN Act notice requirements but is specifically calibrated to AI and automation-driven displacement events.
(1)(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 twenty-five percent or more of total workforce time, within any twelve-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Labor Law § 863(3) shall be entitled to a transition employment period of ninety days from the date of notice provided under section eight hundred sixty-three-a of this article, during which the covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1) shall offer: (a) continued employment or equivalent wages; or (b) participation, at such covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1)'s expense, in a recognized retraining or reskilling program approved by the department.
(2) 3 A covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1) shall not discharge an employee affected by a technological displacementTechnological displacement"Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to twenty-five percent or more of total workforce time, within any twelve-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology.Labor Law § 863(3) during the transition period under subdivision one of this section except for just cause.
Section 863-b creates a mandatory 90-day transition employment period running from the date of the section 863-a notice. During this period, covered employers must either continue employing affected workers at equivalent wages or fund their participation in a department-approved retraining or reskilling program. The section also imposes a just-cause discharge protection — affected employees may not be terminated during the transition period absent just cause, creating a temporary employment-protection floor that runs independently of any at-will employment relationship.
(1) 4 Any covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1) that fails to comply with the notice or transition requirements of this article shall be ineligible for state grants, loans, or tax incentives for five years following such violation.
(2) 5 The commissioner shall maintain a public registry of covered employersCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1) found to have violated this article.
Section 863-c creates two enforcement-adjacent provisions. First, any covered employer that violates the notice or transition requirements of the article becomes ineligible for state grants, loans, or tax incentives for five years — a significant financial consequence that operates as a debarment mechanism rather than a traditional civil penalty. Second, the Commissioner of Labor is required to maintain a public registry of covered employers found to have violated the article, creating a reputational enforcement lever and enabling public accountability.
(1) 6 A covered employerCovered employer"Covered employer" means any business enterprise that employs fifty or more full-time employees in the state.Labor Law § 863(1) that fails to provide the notice required by this article shall be liable to each affected employee for up to sixty days of back pay and benefits.
(2) The commissioner may assess a civil penalty of up to ten thousand dollars per day for willful violations of this article.
(3) The attorney general may bring an action to enjoin violations and recover penalties on behalf of the state.
Section 863-d establishes the bill's penalty and enforcement framework. Employers that fail to provide the required 90-day advance notice are liable to each affected employee for up to 60 days of back pay and benefits — a remedy that runs directly to the harmed workers. For willful violations, the Commissioner may impose civil penalties of up to $10,000 per day. The Attorney General has independent authority to bring enforcement actions seeking injunctive relief and penalty recovery on behalf of the state. No private right of action is created — affected employees receive back pay as a statutory entitlement but enforcement authority rests with the Commissioner and Attorney General.