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SF4576 • 2026
Notice and a transitional employment period required for employees displaced by artificial intelligence, and penalties imposed
Notice and a transitional employment period required for employees displaced by artificial intelligence, and penalties imposed
Labor
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-07
House
Comm report: To pass as amended and re-refer to State and Local Government
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2026-03-23
House
Author added McEwen
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2026-03-18
House
Introduction and first reading
Official Summary Text
Notice and a transitional employment period required for employees displaced by artificial intelligence, and penalties imposed
Current Bill Text
Read the full stored bill text
A bill for an act relating to employment; requiring notice and a transitional employment period for employees displaced by artificial intelligence; imposing penalties; requiring a report; proposing coding for new law in Minnesota Statutes, chapter 181. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [181.9937] SAFEGUARDING HUMAN INTELLIGENCE AND EMPLOYMENT IN LABOR DISPLACEMENT. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Artificial intelligence" means an engineered or machine-based system that varies in the system's level of autonomy and that can, for explicit or implicit objectives, infer from the input the system receives how to generate outputs that can influence physical or virtual environments. new text end new text begin (c) "Covered employer" means any employer who employs the equivalent of 50 or more full-time employees within the state of Minnesota. new text end new text begin (d) "Employment loss" includes any termination, layoff exceeding six months, reduction in work hours of 50 percent or more during each month of any six-month period, or conversion of a human-performed function to an automated function. new text end new text begin (e) "Technological displacement" means the elimination of employment positions, or a reduction in hours equivalent to ten percent or more of total unit or department-equivalent workforce time within any 12-month period, caused in whole or in substantial part by the introduction or expanded use of an artificial intelligence system or other automated technology. new text end new text begin Subd. 2. new text end new text begin Notice of technological displacement. new text end new text begin (a) A covered employer must provide a minimum of 90 days advance written notice prior to any technological displacement affecting (1) ten or more employees, or (2) ten percent of the employer's unit or department-equivalent workforce, whichever is less. new text end new text begin (b) Notice under paragraph (a) must be provided to: new text end new text begin (1) all affected employees and any employee organization representing the affected employees; and new text end new text begin (2) the commissioner of labor and industry. new text end new text begin (c) A notice under paragraph (a) must include a description of: new text end new text begin (1) the functions to be automated; new text end new text begin (2) the number, classification, and location of affected employees; new text end new text begin (3) the anticipated date of technological displacement; new text end new text begin (4) any available retraining or reassignment programs; and new text end new text begin (5) the identity of any vendor or contractor supplying the artificial intelligence system. new text end new text begin (d) The commissioner must develop notice templates for use by covered employers to provide the notice of technological displacement required under this subdivision. new text end new text begin Subd. 3. new text end new text begin Transitional employment period. new text end new text begin (a) Each employee affected by a technological displacement is entitled to a transitional employment period of 90 days from the date notice was provided under subdivision 2, during which the covered employer must offer each affected employee: new text end new text begin (1) continued employment or equivalent wages; and new text end new text begin (2) participation, at the employer's expense, in a recognized retraining or reskilling program approved by the commissioner of labor and industry. new text end new text begin (b) A covered employer must not discharge an employee during that employee's transitional employment period except for just cause. new text end new text begin (c) A covered employer is exempt from the requirements in subdivisions 2 and 3 if the displaced worker transitions to a position with the same or similar benefits and compensation. new text end new text begin Subd. 4. new text end new text begin Incentive eligibility. new text end new text begin (a) Any covered employer that fails to comply with the requirements of this section is ineligible for state grants, loans, or tax incentives for five years following the finding of a violation. new text end new text begin (b) The commissioner of labor and industry must make public a list of covered employers the commissioner has found to have violated this section. new text end new text begin Subd. 5. new text end new text begin Enforcement. new text end new text begin (a) This section may be enforced by the commissioner of labor and industry or the attorney general under section 8.31. new text end new text begin (b) In addition to other remedies available by law or equity, a covered employer that violates subdivision 2: new text end new text begin (1) is liable to each affected employee for up to 90 days of back pay and benefits; and new text end new text begin (2) may be assessed a civil penalty of up to $10,000 for each willful violation to be deposited in the workforce development fund. new text end new text begin (c) In determining the penalty amount for a violation, the commissioner must consider the size of the employer and the severity of the violation. new text end new text begin Subd. 6. new text end new text begin Report. new text end new text begin By February 15, 2028, and each February 15 thereafter, the commissioner must report to the chairs and ranking minority members of the legislative committees having jurisdiction over labor on the number of covered employers that met the technological displacement notice threshold under subdivision 2. The report must also include summary data information including the number of workers and worker classifications affected. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2027. new text end