Purpose

Describe how the bill aims to protect workers displaced by artificial intelligence (AI) by requiring advance notice, a transitional employment period, retraining opportunities, and penalties for noncompliance.

Key Definitions

• Artificial intelligence (AI): an engineered or machine-based system with any level of autonomy that can infer outputs to influence physical or virtual environments.
• Covered employer: an employer in Minnesota with the equivalent of 50 or more full-time employees.
• Employment loss: termination, layoff longer than six months, a 50% or greater reduction in work hours during any six-month period, or conversion of a human-performed function to an automated function.
• Technological displacement: elimination of positions or a 25% or greater reduction in total workforce time within any 12-month period caused by AI or automation.
• Other terms referenced: local workforce development boards, vendor/contractor supplying the AI system, affected employees, and employee organizations.

Main Provisions

• Notice of Technological Displacement

  • Covered employers must give at least 90 days’ advance written notice before technological displacement affecting 25 or more employees or 25% of the workforce (whichever is smaller).
  • Notice must be sent to all affected employees and any employee organization, the commissioner of labor and industry, the chief elected official of each locality with an affected facility, and the local workforce development board where applicable.
  • The notice must describe the functions to be automated, the number and location of affected employees, the anticipated displacement date, any available retraining or reassignment programs, and the identity of the AI vendor or contractor.

• Transitional Employment Period

  • Each affected employee is entitled to a 90-day transitional employment period from the notice date.
  • During this period, the employer must offer continued employment or equivalent wages and, at the employer’s expense, participation in a recognized retraining or reskilling program approved by the commissioner of labor and industry.
  • The employer may not discharge an employee during the transitional period except for just cause.

• Incentives and Public Registry

  • Employers that fail to comply are ineligible for state grants, loans, or tax incentives for five years after a 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 commissioner of labor and industry or the attorney general may enforce these provisions.
  • In addition to other legal remedies, a covered employer that violates the section is liable to each affected employee for up to 60 days of back pay and benefits.
  • A civil penalty of up to $10,000 may be assessed for each willful violation.

Significance and Potential Impact

• Expands employer obligations to provide notice, transition support, and retraining for workers facing AI-driven displacement.
• Introduces financial penalties and loss of state incentives to encourage compliance.
• Establishes a public list of employers who violate the rules, increasing transparency.
• Focuses on larger employers (50+ full-time equivalents) and sets specific thresholds (25 or 25% of workforce) to trigger requirements.

Notable Changes to Existing Law

• Adds a new statutory framework (new section under Minnesota Statutes, chapter 181) to address human intelligence and employment in labor displacement.
• Creates defined terms specific to AI-driven displacement (technological displacement, covered employer, etc.) and codifies notice, transition, and retraining requirements.
• Introduces mandatory 90-day notice, a 90-day transitional employment period, and enforcement penalties (back pay and civil fines) for noncompliance.

Implementation Considerations

• Applies to displacements resulting from AI or automated technologies.
• Requires alignment with retraining programs approved by the state labor agency.
• Requires coordination with local governments and workforce development entities.

Relevant Terms artificial intelligence; AI; technological displacement; covered employer; employment loss; termination; layoff; reduction in hours; 50 full-time employees; 25 percent; notice of technological displacement; 90 days; affected employees; employee organization; commissioner of labor and industry; chief elected official; local workforce development board; retraining; reassignment; just cause; transitional employment period; back pay; benefits; civil penalty; willful violation; public registry; state grants; loans; tax incentives.