AI Law - International Review of Artificial Intelligence LawCC BY-NC-SA Commercial Licence ISSN 3035-5451
G. Giappichelli Editore

10/03/2025 - How New York Is Regulating AI-Driven Layoffs (USA)

argument: Notizie/News - Labor Law / Employment Law

Source: New England Biz Law Update

The article from New England Biz Law Update discusses a new legislative proposal in New York that would require companies to disclose when layoffs are determined or influenced by artificial intelligence systems. The proposed law aims to enhance transparency and protect worker rights by ensuring that employees are informed if AI algorithms played a role in employment termination decisions.

Supporters argue that the mandate is necessary to address concerns about algorithmic bias and to ensure fairness in employment practices. The proposal would require employers to explain the criteria used by AI systems and provide employees with a way to challenge decisions. Critics, however, warn that compliance could be costly and complex for businesses, particularly for small and medium-sized enterprises. The article highlights the growing trend of AI regulation at the state level and the potential implications for federal AI governance policies.