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Establishes the New York workforce stabilization act; requires certain businesses to conduct artificial intelligence impact assessments on the application and use of such artificial intelligence and to submit such impact assessments to the department of labor prior to the implementation of the…
In one paragraph
New York's A 5429-A (the "New York workforce stabilization act") would add Labor Law § 201-j barring employers (in-state businesses with more than 100 employees) from using AI without an impact assessment, repeated every two years and submitted to the department 30 days before implementation, and add Tax Law § 186-h imposing a surcharge of two percent of business income base on corporations that displace employees through AI above tiered thresholds or use AI for data mining. Section 2 takes effect immediately; the tax section on January 1, 2026. Referred to Labor January 7, 2026; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. If enacted, in-state employers with over 100 employees would need AI impact assessments filed with the state, and corporations displacing workers with AI or using AI for data mining would owe a 2% surcharge.
Key provisions
- Labor Law § 201-j: employers may not use or apply AI unless an impact assessment has been conducted, repeated at least every two years and before material changes
- Assessment must describe objectives, algorithms and training data, sensitive data use, and estimates of employees displaced or expected to be displaced; submit to the department at least thirty days before implementation
- Employer means an in-state business, not a small business, with more than one hundred employees
- Tax Law § 186-h: surcharge of two percent of business income base on corporations that terminate or substantially reduce hours of a threshold number of employees (25 to 250 depending on size) due to AI or automation, and on corporations using AI for data mining
- Commissioner may waive the surcharge for eligible corporations (labor shortage, agricultural need, small businesses); proceeds go to worker retraining or the Unemployment Insurance Fund
- Takes effect immediately, except the tax section takes effect January 1, 2026; Senate same-as S1854
Latest legislative action
Jan 7, 2026. referred to labor
Sponsors
| Name | Role |
|---|---|
| ABBATE | Primary |
| CUSICK | Primary |
| Doug Smith R | Primary |
| Harry B. Bronson D | Primary |
| WEPRIN | Primary |
Topics and industries
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Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error