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Governor Hochul Seeks to Expand New York WARN Notice Requirements to Include AI Disclosures

By Shawn Matthew Clark and Adriana H. Foreman

January 23, 2025
3 minute read

New York WARN Act notices are getting longer (again). In her State of the State address earlier this month, Governor Kathy Hochul announced that she will direct the New York Department of Labor (NYDOL) to amend the New York Worker Adjustment and Retraining Notification Act regulations to require that employers disclose in their NY WARN notices whether layoffs are related to the employer’s use of artificial intelligence (AI). According to the governor, this proposal will provide the NYDOL with real data on the potential impact of technology on workers and will ensure that the benefits of AI integration are compatible with an economy where workers can thrive. The governor’s proposal does not provide guidance on how this information should be presented or how the data will be used, but it is one more content obligation that will need to be added to the many other complex notice requirements that already exist in New York WARN.¹

While this proposal to require information regarding the impact of AI on layoff decisions in WARN notices would be the first of its kind across the United States, it is not necessarily surprising given the growing use of AI in the workplace, and we may soon see similar requirements in other jurisdictions. We also may see further expansions of New York WARN in the coming year. A bill currently pending in the New York State Senate (S2595) would expand the act’s coverage to certain controlling individuals and affiliates, remove the part-time exception from the definitions of individuals counted towards the thresholds for mass layoff and facility closure, and impose mandatory severance obligations similar to the New Jersey WARN statute. Employers contemplating a WARN-triggering event in New York should be aware of these potential new requirements and consult with counsel to discuss all aspects of complying with the ever-developing NY WARN Act.

¹The New York WARN Act adds a number of content and process obligations to the requirements of the federal WARN Act, including requiring 90-day advance notice instead of 60-days’ notice under federal WARN, notices be on company letterhead or sent via the company email system, notices be signed by an individual acting as the agent of the employer with authority to bind the employer attesting to the truthfulness of all information, notices be sent to a greater number of government entities, notice include information about each laid off employee in government notices, attaching to the Commissioner of Labor notice a copy of the notices sent to other recipients and significant personal information about affected employees, stating how and when required notices were delivered, and requiring the inclusion of a paragraph in employee and union notices about unemployment insurance, job training, and re-employment services.