Senate Bill S8589

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8589
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             November 21, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the labor law, in relation to enacting the "safeguarding
   human intelligence and employment in labor displacement (SHIELD) act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "safeguarding human intelligence and employment in  labor  displace-
 ment (SHIELD) act".
   §  2.  Legislative findings and intent. The legislature finds that the
 rapid deployment  of  artificial  intelligence  and  automated  decision
 systems is reshaping the nature of work in New York state. While techno-
 logical advancement can enhance productivity, the sudden substitution of
 human  labor  with automated systems threatens the economic stability of
 working people, their families, and the communities that rely  on  them.
 It  is  the  public  policy  of  this state to ensure that technological
 progress proceeds with fairness and transparency, to  require  employers
 to  provide advance notice of workforce reductions attributable to auto-
 mation, and to safeguard opportunities for retraining  and  redeployment
 of displaced workers.
   §  3. The labor law is amended by adding a new article 25-D to read as
 follows:
                               ARTICLE 25-D
                PROTECTION OF WORKERS FROM AI DISPLACEMENT
 
 SECTION 863.   DEFINITIONS.
         863-A. NOTICE OF TECHNOLOGICAL DISPLACEMENT.
         863-B. WORKFORCE TRANSITION PERIOD.
         863-C. INCENTIVE ELIGIBILITY.
         863-D. CIVIL PENALTIES AND REMEDIES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14017-01-5
 S. 8589                             2
              

 
   § 863. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "COVERED EMPLOYER" MEANS ANY BUSINESS ENTERPRISE THAT EMPLOYS FIFTY
 OR MORE FULL-TIME EMPLOYEES IN THE STATE.
   2.  "ARTIFICIAL  INTELLIGENCE  SYSTEM" MEANS ANY COMPUTER-BASED SYSTEM
 CAPABLE OF PERFORMING TASKS, MAKING PREDICTIONS, OR  GENERATING  CONTENT
 THAT  WOULD  OTHERWISE  REQUIRE  HUMAN  INTELLIGENCE,  INCLUDING MACHINE
 LEARNING, NATURAL LANGUAGE PROCESSING, COMPUTER  VISION,  OR  GENERATIVE
 MODELS.
   3.  "TECHNOLOGICAL  DISPLACEMENT"  MEANS THE ELIMINATION OF EMPLOYMENT
 POSITIONS, OR A REDUCTION IN HOURS EQUIVALENT TO TWENTY-FIVE PERCENT  OR
 MORE  OF TOTAL WORKFORCE TIME, WITHIN ANY TWELVE-MONTH PERIOD, CAUSED IN
 WHOLE OR IN SUBSTANTIAL PART BY THE INTRODUCTION OR EXPANDED USE  OF  AN
 ARTIFICIAL INTELLIGENCE SYSTEM OR OTHER AUTOMATED TECHNOLOGY.
   4.  "EMPLOYMENT  LOSS"  INCLUDES ANY TERMINATION, LAYOFF EXCEEDING SIX
 MONTHS, REDUCTION IN WORK HOURS OF FIFTY PERCENT  OR  MORE  DURING  EACH
 MONTH  OF ANY SIX-MONTH PERIOD, OR CONVERSION OF A HUMAN-PERFORMED FUNC-
 TION TO AN AUTOMATED FUNCTION.
   § 863-A. NOTICE OF TECHNOLOGICAL DISPLACEMENT. 1. A  COVERED  EMPLOYER
 SHALL  PROVIDE NO FEWER THAN NINETY DAYS ADVANCE WRITTEN NOTICE PRIOR TO
 ANY TECHNOLOGICAL DISPLACEMENT AFFECTING TWENTY-FIVE OR MORE  EMPLOYEES,
 OR TWENTY-FIVE PERCENT OF THE WORKFORCE, WHICHEVER IS LESS.
   2. NOTICE UNDER SUBDIVISION ONE OF THIS SECTION SHALL BE PROVIDED TO:
   (A)  ALL AFFECTED EMPLOYEES AND ANY EMPLOYEE ORGANIZATION REPRESENTING
 THEM;
   (A) CONTINUED EMPLOYMENT OR EQUIVALENT WAGES; OR
   (B) THE COMMISSIONER;
   (C) THE CHIEF ELECTED OFFICIAL OF EACH  LOCALITY  WHERE  THE  AFFECTED
 FACILITY IS LOCATED; AND
   (D) THE LOCAL WORKFORCE DEVELOPMENT BOARD.
   3. THE NOTICE UNDER SUBDIVISION ONE OF THIS SECTION SHALL DESCRIBE:
   (A) THE FUNCTIONS TO BE AUTOMATED;
   (B) THE NUMBER, CLASSIFICATION, AND LOCATION OF AFFECTED EMPLOYEES;
   (C) THE ANTICIPATED DATE OF DISPLACEMENT;
   (D) AVAILABLE RETRAINING OR REASSIGNMENT PROGRAMS; AND
   (E)  THE IDENTITY OF ANY VENDOR OR CONTRACTOR SUPPLYING THE ARTIFICIAL
 INTELLIGENCE SYSTEM.
   § 863-B. WORKFORCE TRANSITION PERIOD. 1. EACH EMPLOYEE AFFECTED  BY  A
 TECHNOLOGICAL  DISPLACEMENT SHALL BE ENTITLED TO A TRANSITION EMPLOYMENT
 PERIOD OF NINETY DAYS FROM THE DATE OF  NOTICE  PROVIDED  UNDER  SECTION
 EIGHT  HUNDRED  SIXTY-THREE-A  OF THIS ARTICLE, DURING WHICH THE COVERED
 EMPLOYER SHALL OFFER:
   (A) CONTINUED EMPLOYMENT OR EQUIVALENT WAGES; OR
   (B) PARTICIPATION, AT SUCH COVERED EMPLOYER'S EXPENSE, IN A RECOGNIZED
 RETRAINING OR RESKILLING PROGRAM APPROVED BY THE DEPARTMENT.
   2. A COVERED EMPLOYER SHALL NOT DISCHARGE AN EMPLOYEE  AFFECTED  BY  A
 TECHNOLOGICAL  DISPLACEMENT  DURING THE TRANSITION PERIOD UNDER SUBDIVI-
 SION ONE OF THIS SECTION EXCEPT FOR JUST CAUSE.
   § 863-C. INCENTIVE ELIGIBILITY. 1. ANY COVERED EMPLOYER THAT FAILS  TO
 COMPLY  WITH THE NOTICE OR TRANSITION REQUIREMENTS OF THIS ARTICLE SHALL
 BE INELIGIBLE FOR STATE GRANTS, LOANS, OR TAX INCENTIVES FOR FIVE  YEARS
 FOLLOWING SUCH VIOLATION.
   2.  THE  COMMISSIONER  SHALL  MAINTAIN  A  PUBLIC  REGISTRY OF COVERED
 EMPLOYERS FOUND TO HAVE VIOLATED THIS ARTICLE.
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   § 863-D. CIVIL PENALTIES AND REMEDIES.  1.  A  COVERED  EMPLOYER  THAT
 FAILS  TO PROVIDE THE NOTICE REQUIRED BY THIS ARTICLE SHALL BE LIABLE TO
 EACH AFFECTED EMPLOYEE FOR UP TO SIXTY DAYS OF BACK PAY AND BENEFITS.
   2.  THE  COMMISSIONER MAY ASSESS A CIVIL PENALTY OF UP TO TEN THOUSAND
 DOLLARS PER DAY FOR WILLFUL VIOLATIONS OF THIS ARTICLE.
   3. THE ATTORNEY GENERAL MAY BRING AN ACTION TO ENJOIN  VIOLATIONS  AND
 RECOVER PENALTIES ON BEHALF OF THE STATE.
   § 4. This act shall take effect immediately.