There’s a new Minnesota AI labor bill under discussion that could help address some of the job anxiety workers are experiencing as a result of AI. Recently, a flurry of layoffs has been announced, where CEOs have pointed a finger at AI as the primary reason for the job cuts and reorganization efforts. These layoffs don’t require employers to provide any evidence of AI investments or AI-driven efficiencies that have created labor force redundancies. This has allowed employers to rely on AI as part of their displacement strategy without requiring any additional notice to ensure compliance with the law. The Safeguarding Human Intelligence and Employment in Labor Displacement Act, or HF4369, is aimed at providing an additional layer of consideration surrounding AI job losses.
The Minnesota labor bill on AI layoffs addresses worker displacement by emphasizing transparency and employee upskilling. (Image: Pexels)
What You Need to Know About The Minnesota AI Labor Bill
Minnesota’s AI-focused job protection bill doesn’t necessarily prevent employers from conducting layoffs in favor of artificial intelligence, as this would be an intrusion on the rights of a public employer. Instead, it requires employers to provide a 90-day notice to alert employees to the incoming change and allow them sufficient time to prepare before deploying technology that could displace jobs.
This transitional period doesn’t just imply time for employees to find a new role, which is the purpose of a Worker Adjustment and Retraining Notification (WARN notice). Instead, the transitional work period would allow employees to receive pay and a chance to upskill or reskill, which could eventually allow them to transition into a new role or continue with their employment.
Additionally, apart from the 90-day notice regarding the AI layoffs, the Safeguarding Human Intelligence and Employment in Labor Displacement Act would also require employers to send a notice to labor representatives, the Department of Labor and Industry, and other local officials.
How Will the Minnesota AI Job Protection Bill Set Precautions in Place?
As it stands, Minnesota’s AI workplace law reportedly covers employers with 50 or more full-time employees in the state. The technological displacement here would also warrant notifying the relevant authorities if the displacement affected 25 or more employees, or 25% of the workforce, whichever was found to be lower. The notice would require employers to detail the technical advancements being made while also estimating the impact on employees, the retraining programs that will be available to workers, etc. As such, the Minnesota AI labor bill will prompt employers to think more deeply about the impact of their AI advancements and whether layoffs are the best approach for their business.
Considering the emphasis on upskilling and retaining, employees also gain additional protections and support for the next step of their careers, rather than being displaced by the technology entirely. Many employees suspect that AI has been used as a scapegoat for layoffs, which has resulted in greater confusion and uncertainty surrounding the technology. With more transparency and communication introduced into the process, the adoption of AI could be considerably smoother for employers, employees, and regulators.
If the labor bill is approved, employers who fail to send in the necessary AI displacement notices as mandated by the law could be held liable for 60 days of back pay and benefits to each employee. They would also face penalties adding up to $10,000 per violation, and employers may then be barred from receiving state grants, loans, or tax incentives for the next five years. These precautions further urge compliance.
The AI Workplace Law Under Discussion in Minnesota Is a Big Step Towards Necessary Regulation
Minnesota’s AI labor bill may be highly contentious for employers, but some lawmakers see a clear need for such precaution. According to reports, many Minnesota jobs have high exposure to generative AI, and workers remain at risk of displacement from their roles. This constant anxiety over job loss or the active consequences of job cuts could affect other aspects of life in the state and lead to future problems with the economy and operations down the line.
Rather than wait for the ill effects of AI-motivated layoffs to play out, the Minnesota AI-focused job protection bill requires employers to use greater discretion in planning out their AI advancements and understanding the resulting impact on the workforce. While federal regulations are slow to come, states are working to set their own protection in place for the measured and ethical use of the technology, which is always an ideal approach to change.
Do you think Minnesota’s AI labor bill is a good start to employee protections in the workplace? Share your thoughts in the comments with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
