Purpose

• Establish protections for workers when artificial intelligence (AI) or automated systems cause job loss or major changes in work hours. The goal is to require advance notice, provide a transition period with retraining, and establish penalties to discourage noncompliance.

Key definitions

• Artificial intelligence (AI): an engineered machine-based system that can autonomously or semi-autonomously influence work outcomes or environments.
• Covered employer: an employer in Minnesota with 50 or more full-time employees.
• Employment loss: termination or layoff, a reduction of 50% or more in work hours in any month over six months, or conversion of a human job to an automated function.
• Technological displacement: elimination of jobs or a reduction of 25% or more of total hours in a 12-month period due to AI or automated technology.

Main provisions

• Notice of technological displacement
  • Covered employers must give at least 90 days’ advance written notice before displacement that affects 25 or more employees or 25% of the workforce, whichever threshold is lower.
  • Notice must be sent to: affected employees, any employee organization representing them, commissioner of labor and industry, chief elected official of the locality where the facility is, and the local workforce development board for the area.
  • The notice must include: which functions will be automated, the number/classification/location of affected employees, the expected date of displacement, available retraining or reassignment programs, and the vendor or contractor supplying the AI system.
• Transitional employment period
  • Affected employees are entitled to a 90-day transitional employment period starting from the notice date.
  • During this period, employers must offer continued employment or equivalent wages and cover the cost of a recognized retraining or reskilling program approved by the commissioner of labor and industry.
  • Employees cannot be discharged during the transitional period except for just cause.
• Incentives and public registry
  • Employers who fail to comply become ineligible for state grants, loans, or tax incentives for five years after a finding of violation.
  • The commissioner of labor and industry must maintain a public registry of covered employers found to have violated the section.
• Enforcement and remedies
  • The enforcement may be carried out by the commissioner or the attorney general.
  • In addition to other remedies, a covered employer that violates the notice/transitional requirements can owe each affected employee up to 60 days of back pay and benefits.
  • Willful violations can result in civil penalties of up to $10,000 per violation.

Effects on existing law

• Creates a new statutory framework (in Minnesota Statutes chapter 181) to guard against AI-driven labor displacement by mandating notice, transition support, and penalties.
• Introduces penalties and a public violator registry to incentivize compliance.

Practical implications

• For employers: requires planning for AI-driven changes, formal notice processes, and funded retraining opportunities; noncompliance carries financial penalties and loss of state incentives.
• For workers: offers a defined transition period with support and retraining opportunities, plus potential protections against abrupt displacement.
• For the state: establishes oversight mechanisms and a public record of violators to encourage adherence.

Relevant Terms AI, artificial intelligence technological displacement covered employer employment loss notice transitional employment period just cause retraining reskilling back pay civil penalty public registry commissioner of labor and industry local workforce development board vendor or contractor state grants, loans, or tax incentives affected employees employee organization