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 intelligence systemArtificial intelligence system"Artificial intelligence system" means any computer-based system capable of performing tasks, making predictions, or generating content that would otherwise require human intelligence, including machine learning, natural language processing, computer vision, or generative models.Labor Law § 863(2)" means any computer-based system capable of performing tasks, making predictions, or generating content that would otherwise require human intelligence, including machine learning, natural language processing, computer vision, or generative models.
(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 intelligence systemArtificial intelligence system"Artificial intelligence system" means any computer-based system capable of performing tasks, making predictions, or generating content that would otherwise require human intelligence, including machine learning, natural language processing, computer vision, or generative models.Labor Law § 863(2) or other automated technology.
(4) "Employment lossEmployment loss"Employment loss" includes any termination, layoff exceeding six months, reduction in work hours of fifty percent or more during each month of any six-month period, or conversion of a human-performed function to an automated function.Labor Law § 863(4)" includes any termination, layoff exceeding six months, reduction in work hours of fifty percent or more during each month of any six-month period, or conversion of a human-performed function to an automated function.
This section establishes the four key definitions that govern the scope of the Automation Displacement Protection Act. Covered employer is defined as any business with 50 or more full-time employees in New York, establishing a small-employer exemption. Artificial intelligence system is defined broadly to include any computer-based system performing tasks that would otherwise require human intelligence. Technological displacement sets the threshold that triggers the Act's obligations: elimination of positions or a 25% or greater reduction in workforce hours within 12 months, caused in whole or substantial part by AI or automated technology. Employment loss covers terminations, extended layoffs, substantial hour reductions, and conversion of human functions to automated ones.
(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) 2 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 intelligence systemArtificial intelligence system"Artificial intelligence system" means any computer-based system capable of performing tasks, making predictions, or generating content that would otherwise require human intelligence, including machine learning, natural language processing, computer vision, or generative models.Labor Law § 863(2).
Section 863-a establishes the bill's central advance-notice requirement: covered employers must provide at least 90 days' advance written notice before any technological displacement affecting 25 or more employees or 25% of the workforce, whichever is less. The notice must be distributed to a defined set of recipients — affected employees and their union representatives, the Commissioner of Labor, the chief elected official of each affected locality, and the local workforce development board. The required notice contents are detailed: the employer must describe the functions to be automated, the number and classification of affected employees and their locations, the anticipated displacement date, available retraining or reassignment programs, and the identity of the AI vendor or contractor.
This structure is analogous to the federal WARN Act and New York's existing WARN provisions, but is specifically tailored to displacement caused by AI and automation rather than plant closings or mass layoffs generally.
(1)(a)–(b) 3 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) 4 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 an enforceable 90-day workforce transition period running from the date of the displacement notice. During this period, covered employers must offer each affected employee either continued employment (or equivalent wages) or participation in a department-approved retraining or reskilling program at the employer's expense. Critically, the employer may not discharge an affected employee during the transition period except for just cause, creating a limited job-protection window tied specifically to automation displacement.
This provision goes significantly beyond the federal WARN Act's notice-only model by imposing affirmative retraining obligations and a just-cause termination standard during the transition window.
(1) 5 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) 6 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 consequences for non-compliance. First, any covered employer that violates the notice or transition requirements becomes ineligible for state grants, loans, or tax incentives for five years — a significant economic penalty for businesses that rely on state economic development programs. Second, the Commissioner of Labor must maintain a public registry of employers found to have violated the article, creating a reputational enforcement mechanism alongside the financial penalty.
(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) 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 enforcement framework. Employers that fail to provide required notice are liable to each affected employee for up to 60 days of back pay and benefits, creating a per-employee damages measure. The Commissioner may assess civil penalties of up to $10,000 per day for willful violations, introducing a substantial escalation for intentional non-compliance. The Attorney General is authorized to bring enforcement actions to enjoin violations and recover penalties on behalf of the state. No private right of action is created — enforcement flows exclusively through the Commissioner and the Attorney General.