A proposed Minnesota law would require large employers to give workers at least 90 days notice before replacing them with artificial intelligence and pay for their retraining during that period.
The bill, introduced in the Minnesota House on March 16, targets covered employers — defined as those with 50 or more full-time equivalent employees in the state. It was referred to the House Workforce, Labor, and Economic Development Finance and Policy committee.
The legislation defines technological displacement as the elimination of jobs, or a reduction in hours equal to 25 per cent or more of total workforce time within a 12-month period, caused in whole or in substantial part by AI or other automated technology.
Notice requirements
Under the bill, employers would be required to notify affected employees, any union representing them, the commissioner of labour and industry, local elected officials, and the local workforce development board before any displacement affecting 25 or more employees, or 25 per cent of the workforce, whichever is less.
The notice must describe the functions being automated, the number and classification of affected workers, the expected date of displacement, available retraining or reassignment programs, and the identity of any vendor supplying the AI system.
Transitional period
Employees facing displacement would be entitled to a 90-day transitional employment period, during which employers must provide continued employment or equivalent wages.
Employers would also be required to cover the cost of a retraining or reskilling program approved by the commissioner of labour and industry. During the transitional period, employers could not dismiss affected workers except for just cause.
Penalties
Employers that fail to comply with the notice requirements would be liable to each affected employee for up to 60 days of back pay and benefits. Willful violations could result in civil penalties of up to $10,000 per violation.
Non-compliant employers would also be barred from receiving state grants, loans, or tax incentives for five years following a finding of violation. The commissioner of labour and industry would be required to maintain a public registry of employers found in violation.
The bill may be enforced by the commissioner of labour and industry or the state attorney general. It was authored by five members: David Gottfried, Pete Johnson, Keri Rehrauer, Josiah Hill, and Liish Kozlowski.
