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 Senate Bill 8589-C, the 'Automation Displacement Protection Act,' amends the Labor Law by adding new Article 25-D to protect workers from displacement caused by artificial intelligence and automated technology. Under Section 863, a 'covered employer' is defined as any business with 50 or more full-time employees in the state, and 'technological displacement' means eliminating positions or reducing hours by 25% or more of total workforce time within any 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, notifying affected employees, their union representatives, the commissioner, local elected officials, and the local workforce development board. The notice must describe the functions being automated, the number and classification of affected workers, the anticipated displacement date, available retraining programs, and the identity of any AI vendor. Section 863-b entitles each affected employee to a 90-day transition period during which the employer must offer continued employment or equivalent wages, or fund participation in a department-approved retraining or reskilling program, and may not discharge the employee except for just cause. Section 863-c bars non-compliant employers from state grants, loans, or tax incentives for five years and requires the commissioner to maintain a public registry of violators. Section 863-d provides that employers who fail 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 bring injunctive actions and recover penalties.

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