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.Labor 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.
This subdivision defines the term covered business for the purposes of the AI impact assessment reporting requirement. Coverage extends to any business entity doing business in New York that either employs more than 100 people or is publicly traded — a dual-trigger test that captures both large private employers and all publicly traded entities regardless of headcount.
(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.Labor 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:
(2)(a) 1 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.Labor Law § 201-j(1) has decided not to fill due in full or in part to use of artificial intelligence; and
(2)(b) 1 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.
This subdivision imposes the bill's core obligation: covered businesses must file annual reports with the Department of Labor by March 1, covering the preceding calendar year. The report has two major components. The first is employment data — estimates of employees displaced or whose hours were reduced due to AI, employees hired or whose hours increased due to AI, and positions previously filled that the business decided not to fill due to AI. The second is AI usage information — objectives, human oversight, frequency and duration of use, sensitive personal data handling (including storage and access protections), and risk reduction measures.
The breadth of the reporting categories is notable: the bill reaches beyond hiring decisions to capture workforce displacement and hour reduction attributable to AI, and it requires disclosure of sensitive data handling practices and oversight mechanisms — obligations more commonly seen in automated decision-making statutes than in pure reporting frameworks.
(3) 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.Labor 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.Labor Law § 201-j(1).
This subdivision directs the Department of Labor to develop standardized reporting forms and processes for covered business submissions, and authorizes the Department to develop additional reporting requirements related to the hiring and business impacts of AI. This is a government-facing administrative obligation — it does not impose a direct compliance obligation on covered businesses.
(4)(a) 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.Labor 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.
(4)(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.Labor 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.
(4)(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.Labor Law § 201-j(1), including analysis of such impacts by employment sector, geographic location, and business size.
This subdivision requires the Department of Labor to compile an annual aggregate report on the impact of AI on hiring and the nature of AI usage statewide, based on the covered business submissions. The report must be submitted to the governor and legislative leaders within 120 days of the March 1 covered business reporting deadline (i.e., by approximately June 29) and made publicly available on the Department's website simultaneously. The report must include aggregate data on employment impacts, objectives, and implementation of AI, broken down by employment sector, geographic location, and business size.
This is a government-facing obligation directed at the Department, not at covered businesses. However, it creates the public transparency mechanism through which the covered business data becomes accessible.
(5)(a) 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.Labor 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.Labor Law § 201-j(1) remains in violation of such reporting requirements.
(5)(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.Labor 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.
This subdivision establishes enforcement for failure to report. A covered business that fails to submit the required annual report is subject to a civil penalty of up to $500 per day for each day it remains in violation. However, a 90-day cure period applies: upon notice of a violation, the covered business has 90 days to resolve the violation to the Commissioner's satisfaction, and if cured within that period, the Commissioner shall waive or reduce the applicable penalties. This cure-period structure substantially softens the enforcement mechanism.
This act shall take effect immediately.
The act takes effect immediately upon enactment. Because the reporting obligation runs on an annual cycle (by March 1 for the preceding calendar year), the first reports would be due March 1 of the year following enactment.