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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.
In one paragraph
New York's S 8589-C, the Automation Displacement Protection Act, would add Labor Law Article 25-D. Employers with 50 or more full-time employees in the state would have to give at least 90 days' written notice before a technological displacement affecting 25 employees or 25% of the workforce, whichever is less, and give affected employees a 90-day transition period. Penalties include up to $10,000 per day for willful violations. Amended May 14, 2026 (print number 8589c) and in the Labor Committee; 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, employers with 50 or more full-time employees in New York would have to give 90 days' notice before AI-driven displacement and provide a transition period, or risk penalties and loss of state incentives.
Key provisions
- Technological displacement means eliminating positions, or cutting hours by 25% or more of total workforce time in any twelve-month period, caused in whole or substantial part by introducing or expanding an AI system or other automated technology
- § 863-A: notice at least 90 days ahead to affected employees and their representative, the Commissioner, local elected officials and the workforce development board, stating the functions automated, affected employees, date, retraining options and any AI vendor
- § 863-B: each affected employee gets a 90-day transition period with continued employment or equivalent wages, or employer-paid approved retraining, and may be discharged only for just cause
- § 863-C: non-compliant employers are ineligible for state grants, loans or tax incentives for five years and go on a public registry kept by the Commissioner
- § 863-D: up to 60 days of back pay and benefits for missing notice; Commissioner civil penalty up to $10,000 per day for willful violations; the Attorney General may sue to enjoin violations
- Would take effect immediately; no sunset is stated
Latest legislative action
May 14, 2026. print number 8589c
Sponsors (showing 5 of 8)
| Name | Role |
|---|---|
| Jessica Scarcella-Spanton D | Primary |
| KAPLAN | Primary |
| KENNEDY | Primary |
| Rachel May D | Primary |
| SEWARD | 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