U.S. bill seeks 90-day notice for AI layoffs, mandates upskilling
MINNESOTA, UNITED STATES — A new bill under consideration in Minnesota, the Safeguarding Human Intelligence and Employment in Labor Displacement Act (HF4369), aims to reshape how employers handle workforce reductions tied to artificial intelligence (AI).
The HR Digest reports that rather than banning AI-driven layoffs, the legislation would mandate a 90-day transitional period requiring employers to provide paid notice and upskilling opportunities before technology displaces workers.
Transition, not just notification
The Minnesota AI labor bill, HF4369, does not prohibit employers from laying off workers in favor of AI because lawmakers consider such a ban an intrusion on public employers’ rights.
Rather, the law provides a 90-day notice period to give employees time to prepare for the technology implementation, which might result in their job being eliminated.
This transition phase extends beyond the standard Worker Adjustment and Retraining Notification (WARN) by providing impacted employees with payment and access to upskilling or retraining programs, which is likely to help them move into new positions within the company.
Employers will also be required to serve notices on labor representatives, the Department of Labor and Industry, and local officials under the proposed law.
It was reported that the bill applies to employers with 50 or more full-time workers in the state and that the notification requirements are to be instituted when there is displacement of 25 or more workers, or 25% of the workers, whichever is lower.
The notice needed should specify the technical progress to be made, approximate the effect on employees, and outline the retraining programs that will be offered, forcing employers to consider more effectively whether it is really the best option to lay off workers.
Enforcement and State-led precaution
The Minnesota law proposes severe punishment for non-compliance, aiming to promote transparency in AI-related workforce changes.
Any employer who does not provide the necessary AI displacement notices may be liable to make back pay and benefits payments to every affected individual, be fined up to 10,000 per violation, and be unable to receive state grants, loans, or other tax credits for five years.
The initial aim of such enforcement actions is to encourage compliance and offer employees help and protection in the next stage of their professional growth, to counter the claims that AI was a scapegoat to lay off without trying to identify any actual efficiencies.
Lawmakers’ support for the bill is based on the apparent need to take precautions, as reports indicate that most Minnesota workplaces are highly susceptible to generative AI, exposing employees to the risk of job loss.
Regular fear of losing a job, according to proponents, may affect other spheres of state life and lead to future economic issues, requiring action first.
Since federal regulations have progressed gradually, the Minnesota AI-oriented job projection bill is an attempt at the state level to introduce a gradual, ethical framework for technology use, obliging employers to be much more selective in designing AI growth and in assessing its effects on the labor market.
