New York Amends WARN Act to Require Disclosure of AI-Related Layoffs, by Keith J. Gutstein, Esq. and Shiddhartha Uddin, Esq., 8-4-2025

New York has become the first U.S. state to require employers to disclose whether technological innovation or automation such as artificial intelligence (AI) contributed to employee layoffs, as part of a recent update to New York State’s Worker Adjustment and Retraining Notification (WARN) notice forms.

The new disclosure, effective since March 2025, adds another compliance layer for NY companies subject to WARN that are planning workforce reductions.

Who is covered?

New York’s WARN Act, which is stricter than the federal WARN Act, applies to private businesses with 50 or more full-time employees in NYS. It covers:

• Closings affecting 25 or more employees within a 30-day period;
• Mass layoffs involving 25 or more full-time employees (if the 25 or more employees make up at least 33% of all the employees at the site and this results in more than a six-month loss of employment for such employees) within a 30-day period;
• Mass layoffs involving 250 or more full-time employees within a 30-day period (provided that this results in more than a six-month loss of employment for such employees); and
• Certain other relocations and covered reductions in work hours

With certain exceptions, WARN notices must be sent 90 days prior to a plant closing, mass layoff, relocation or other covered reduction in work hours.

Key Changes to NY WARN Notice

The NYS Department of Labor (DOL) has updated its WARN Act notice submission form to now include:

• A mandatory checkbox on WARN notices asking whether the job losses are related to technological innovation or automation.
• If the box is checked, employers are then prompted to select which of the technologies were implemented (i.e. AI, robotic processes and/or automation, etc.)

The update does not modify the existing obligations regarding the issuance of WARN notices but establishes an additional disclosure requirement. The DOL has yet to provide definitive guidance on the definition of “Artificial Intelligence” or “robotic process” as referenced in the WARN Act notice. We encourage employers to consult with counsel with regard to their notice obligations under the Act.

Under NY’s WARN Act, employers must send notices to (as per the DOL fact sheet):

• All affected employees
• Their representatives
• The NYS DOL
• Local workforce development boards
• The chief elected official of the unit or units of local government where the site of employment is located
• The school district or districts where the site of employment is located
• Each locality that provide(s) police, firefighting, emergency medical or ambulance services, or other emergency services, to the locale where the site of employment is located

Penalties

Businesses that fail to file a WARN Notice would require the Commissioner of Labor to enforce penalties under the State WARN Act. The Act provides for a civil penalty of $500 per day of violation. Employers are also liable for back pay and other benefits for 60 days of the violation.

Action Steps

To ensure compliance employers should consider:

• Reviewing upcoming workforce reduction plans and determine whether AI, machine learning tools, or automation played a role in job eliminations.
• Training HR and legal teams on the new disclosure requirement and how to complete the updated WARN forms accurately.
• Documenting all decision-making processes related to job reductions to support disclosure and minimize legal exposure.

Authors: Keith J. Gutstein, Chair of KD’s Labor and Employment Law Practice Group and Co-Managing Partner of the Long Island Office and Attorney Shiddhartha Uddin