Requires covered businesses to annually report to the department of labor regarding the impact of artificial intelligence on hiring and business practices for the previous year; requires the department of labor to file an annual report on the impact of artificial intelligence on hiring and business practices in the state; establishes penalties for covered business that fail to submit such reports.
STATE OF NEW YORK
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8706
IN SENATE
January 7, 2026
___________
Introduced by Sen. HINCHEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to requiring covered busi-
nesses to submit annual reports on the impact of artificial intelli-
gence on hiring and business practices
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The labor law is amended by adding a new section 201-j to
2 read as follows:
3 § 201-j. Artificial intelligence impact assessments. 1. Definition.
4 For purposes of this section, "covered business" shall mean a business
5 entity that is resident in the state and: (a) employs more than one
6 hundred people; or (b) is a publicly traded entity.
7 2. Reporting requirement. On or before March first of every year, a
8 covered business shall report to the department regarding the impact of
9 artificial intelligence on its hiring and business practices in the
10 calendar year ending the preceding December thirty-first. Such report
11 shall include:
12 (a) Employment data, including but not limited to:
13 (i) An estimate of the number of employees displaced, or whose hours
14 have been reduced, due in full or in part to increased use of artificial
15 intelligence;
16 (ii) An estimate of the number of employees hired, or whose hours have
17 been increased, due in full or in part to increased use of artificial
18 intelligence; and
19 (iii) An estimate of the number of positions previously filled that
20 the covered business has decided not to fill due in full or in part to
21 use of artificial intelligence; and
22 (b) Information on the nature of artificial intelligence usage,
23 including but not limited to:
24 (i) Descriptions of the objectives of the use of artificial intelli-
25 gence;
26 (ii) Information regarding any human oversight of artificial intelli-
27 gence;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14332-01-6
S. 8706 2
1 (iii) Information on the frequency and length of use of artificial
2 intelligence;
3 (iv) Information on any use of artificial intelligence in relation to
4 sensitive personal data, including storage and access protections
5 related to use of artificial intelligence in relation to such personal
6 data; and
7 (v) Measures in place for oversight, risk reduction, or other
8 protections related to use of artificial intelligence.
9 3. Responsibilities of the department. The department shall develop
10 standard reporting forms and processes for covered businesses to submit
11 the reports required pursuant to subdivision two of this section. The
12 department may develop additional reporting requirements related to the
13 hiring and business impacts of utilization of artificial intelligence by
14 covered businesses.
15 4. Annual report. (a) The department shall review the reports submit-
16 ted by covered businesses pursuant to subdivision two of this section
17 and shall prepare an annual report on the impact of artificial intelli-
18 gence on hiring and business practices in the state based on the depart-
19 ment's review of such reports submitted pursuant to subdivision two of
20 this section.
21 (b) The department shall submit the report required pursuant to para-
22 graph (a) of this subdivision to the governor, the temporary president
23 of the senate, the minority leader of the senate, the speaker of the
24 assembly, and the minority leader of the assembly within one hundred
25 twenty days of the covered business reporting deadline established
26 pursuant to subdivision two of this section. Such report shall be made
27 publicly available on the department's website at the same time as such
28 report is submitted to the governor and legislature.
29 (c) The report required pursuant to paragraph (a) of this subdivision
30 shall include, but not be limited to, presentation of aggregate data
31 regarding employment impacts, objectives, and implementation of artifi-
32 cial intelligence by covered businesses, including analysis of such
33 impacts by employment sector, geographic location, and business size.
34 5. Enforcement. A covered business who fails to report pursuant to the
35 requirements of this section shall be subject to a civil penalty of not
36 more than five hundred dollars for each day such covered business
37 remains in violation of such reporting requirements; provided, however,
38 that the commissioner may, in the commissioner's discretion, reduce the
39 amount of the penalty if a covered business proves to the satisfaction
40 of the commissioner that the failure to report was in good faith.
41 § 2. This act shall take effect immediately.
