Did a robot yoink your job? Employers in New York are now required to disclose if they’re letting someone go in favor of using AI to do their job. New York is the first state in the United States to make such a rule, but they most likely won’t be the last. Wondering how this […]
Did a robot yoink your job? Employers in New York are now required to disclose if they’re letting someone go in favor of using AI to do their job. New York is the first state in the United States to make such a rule, but they most likely won’t be the last.
Wondering how this came about? Here’s the skinny. New York updated its WARN (Worker Adjustment and Retraining Notification) Act, and now companies that are letting go of 50 or more workers have to check a little box that says whether or not automation or AI is playing a role in the layoffs. Employers also now have to give 90 days’ notice, adding an extra level of transparency to the proceedings.
Why does this matter? Peer pressure. This is the first law of its kind in the United States, and when one state makes a legal decision like this, others generally follow. This is a big deal for workers who are facing being thrown back into a volatile job market, because they’ll finally be on the receiving end of honesty about why they’re being let go (hint: it’s not actually always budget cuts). Companies aren’t able to hide behind a flimsy excuse anymore—they now legally have to actually inform workers why they’re being let go. That requirement adds a level of pressure to employers that previously didn’t exist. It turns out that when you have to say in print that you’re letting someone go because you’re outsourcing to a robot, you examine your choices a little differently.
Where workers are concerned, more transparency is directly related to more power. Being aware of whether you were let go because of personal reasons that you can improve upon, versus numbers that you’re powerless to do anything about, can better inform the choices that you make. Having a clear picture of why a layoff occurred helps when determining what kind of retraining and support programs to seek in the “next steps” phase.
For employers, knowing that data is public information adds a level of accountability that previously hasn’t existed—and there’s the crux of the matter. Accountability in the era of AI is still new, and forcing employers to explain whether or not they’re letting human workers go in favor of AI services that don’t require a salary is a positive step for employees everywhere. Where accountability is required, it’s harder to disguise the real reason for layoffs behind buzzwords, especially with company reputations on the line.
Will New York’s decision slow down the “automate everything” trend? TBD, but at the very least it will present companies with a PR risk they don’t want to navigate. The bots might be here to stay, but now the receipts will be as well. Other states are watching, and it’s just a matter of time until they decide to follow New York’s lead.
