MINNESOTA, UNITED STATES — A bill to address AI-driven displacement is currently under consideration in Minnesota. This would mandate that companies provide 90 days’ notice to employees for operational changes related to technology deployment.
The bill, formally titled the Safeguarding Human Intelligence and Employment in Labor Displacement Act, was introduced by Representative David Gottfried. If passed, employers are required to serve “notice and a transitional employment period for employees displaced by artificial intelligence; imposing penalties,” according to the bill summary.
This proposal was carefully drafted following a report from NorthStar Policy Action. It detailed that more than 31% of Minnesota jobs, accounting for 813,000 workers, have “high exposure” to generative AI, which means that these roles could see elimination due to automation.
Stricter Guardrails on AI-Driven Layoffs and Restructuring
In recent months, a surge in layoffs, attributed to AI investments, has occurred. Companies typically cite the tool as a reason, stating that its deployment has created labor redundancies.
The Safeguarding Human Intelligence and Employment in Labor Displacement Act serves as a protective layer for employees, helping to prevent related situations.
It doesn’t necessarily prevent layoffs in favor of AI. Instead, it prompts employers to consider the changes they’ll be making more thoroughly and whether layoffs are truly the best approach for their business. The bill requires employers to:
- Provide employees with 90 days’ notice of an upcoming change, allowing them to prepare before systemic changes could lead to job displacement.
- Send a notice to the Department of Labor and Industry, labor representatives, and local officials about the changes they’ll be making.
- Notify relevant authorities if 25 or more employees, or 25% of the workforce, will be affected.
These notices will require employers to detail the advancements being deployed and to estimate their impact on employees and the retraining programs they’ll offer.
Additionally, the 90-day transitional period is emphasized as an opportunity for employees to upskill or reskill, rather than merely a waiting or job-seeking period. It should prioritize employee retention by allowing them to transition to a new role should AI-driven role redundancy occur.
Toward Better Job Market Regulation
If the bill is approved, employers who fail to comply will be held liable for 60 days of back pay and benefits for each affected employee. They may also stop receiving tax incentives, state grants, or loans, and face penalties totaling $10,000 per violation.
Lawmakers are recognizing the need to enact such precautions, especially given the current state of the job market. The bill doesn’t just cater to employee protection but also to safeguarding the economy.
