WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
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) For purposes of this section, "covered businessCovered business"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.Lab. Law § 201-j(1)" 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.
Subdivision 1 defines the bill's sole covered entity type — covered business — as any business entity doing business in the state that either employs more than 100 people or is publicly traded. The definition is intentionally broad: it captures both large private employers and all public companies regardless of employee count.
(2) 1 On or before March first of every year, a covered businessCovered business"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.Lab. Law § 201-j(1) 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 businessCovered business"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.Lab. Law § 201-j(1) 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.
Subdivision 2 imposes the bill's core compliance obligation: an annual reporting duty on covered businesses. By March 1 of every year, covered businesses must file a report with the Department of Labor covering the preceding calendar year. The report has two mandatory components: (1) employment data estimating workforce displacement, expansion, and unfilled positions attributable to AI; and (2) qualitative information on AI usage objectives, human oversight, frequency of use, sensitive data handling, and risk-reduction measures.
The provision is structured as an enumerated list of required report elements preceded by "including but not limited to," signaling that the Department may require additional data elements through the forms it develops under subdivision 3.
(3) 2 The department shall develop standard reporting forms and processes for covered businessesCovered business"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.Lab. Law § 201-j(1) 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 businessesCovered business"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.Lab. Law § 201-j(1).
Subdivision 3 directs the Department of Labor to develop standardized reporting forms and processes for covered businesses. It also grants the Department discretionary authority to expand reporting requirements beyond the enumerated data elements in subdivision 2, specifically related to hiring and business impacts of AI utilization.
(4)(a)–(c) 3 The department shall review the reports submitted by covered businessesCovered business"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.Lab. Law § 201-j(1) 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 businessCovered business"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.Lab. Law § 201-j(1) 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 businessesCovered business"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.Lab. Law § 201-j(1), including analysis of such impacts by employment sector, geographic location, and business size.
Subdivision 4 requires the Department of Labor to review covered business submissions and produce its own annual aggregate report on AI's impact on hiring and workforce dynamics in the state. The Department's report must be submitted to the Governor and legislative leaders within 120 days of the March 1 covered-business deadline (i.e., by approximately June 29) and simultaneously published on the Department's website. The report must include aggregate data on employment impacts, AI objectives, and implementation, broken down by sector, geography, and business size.
(5)(a)–(b) A covered businessCovered business"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.Lab. Law § 201-j(1) 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 businessCovered business"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.Lab. Law § 201-j(1) remains in violation of such reporting requirements. (b) Upon notice of a violation of this section, a covered businessCovered business"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.Lab. Law § 201-j(1) 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.
Subdivision 5 establishes the enforcement mechanism for the reporting obligation. Noncompliant covered businesses face a civil penalty of up to $500 per day for each day in violation. However, the subdivision provides a meaningful safe harbor: upon notice of a violation, the covered business has 90 days to cure. If the Commissioner is satisfied the violation has been cured within the 90-day period, penalties must be waived or reduced. This enforcement framework creates a low-penalty, compliance-incentivizing structure.
This act shall take effect immediately.
Section 2 provides that the act takes effect immediately upon enactment. Because the bill has not yet been enacted, no effective date is set at the law level.