AI Frontier Institute

Requires covered employers to provide notice to certain affected employees prior to any technological displacement; requires reporting; requires a workforce transition period; makes related provisions.

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New York Assembly Bill 9533-A, the 'Automation Displacement Protection Act,' amends the Labor Law by adding Article 25-D to protect workers from job displacement caused by artificial intelligence and automated technology. Under Section 863, a 'covered employer' is any business with 50 or more full-time employees in New York, and 'technological displacement' includes eliminating positions or reducing workforce hours by 25% or more within a 12-month period due to AI or automation. Section 863-a requires covered employers to give at least 90 days advance written notice before any technological displacement affecting 25 or more employees, or 25% of the workforce (whichever is less), to affected employees, their union representatives, the commissioner, local elected officials, and the local workforce development board. The notice must detail the functions being automated, affected employees, anticipated displacement date, available retraining programs, and the AI vendor's identity. Section 863-b entitles each displaced employee to a 90-day transition period during which the employer must provide continued employment or equivalent wages, or pay for an approved retraining or reskilling program; discharge during this period is only permitted for just cause. Section 863-c makes non-compliant employers ineligible for state grants, loans, or tax incentives for five years, and the commissioner must maintain a public registry of violators. Section 863-d provides that employers failing to give required notice are liable for up to 60 days of back pay and benefits per affected employee, the commissioner may impose civil penalties up to $10,000 per day for willful violations, and the attorney general may seek injunctive relief and recover penalties on behalf of the state.

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