Could a New US Bill Protect Workers from AI Layoffs?

Employee anxiety around AI is rising. Research from Reuters and Ipsos finds that 71% of Americans are concerned that AI will cause permanent job loss, and with 54,000 people reportedly losing their jobs due to AI-related layoffs in 2025, it’s easy to see why.

The state of Minnesota is looking to change that, however. 

A newly proposed bill, currently under consideration, would legally require a 90-day transitional period before AI replaces workers, which would include paid notice for employees and upskilling opportunities. 

Minnesota Representative David Gottfried told HR Brew that this bill could make a significant difference to people in Minnesota – with research from the University of St. Thomas finding that jobs in the state have a high risk of AI exposure. 

He said :“Workers in Minnesota face potentially life-altering job displacement due to the deployment of an AI system in their workplace.

“Conversations with experts and industry leads indicate this displacement is only a matter of time.”

Keeping employees informed

The bill, called the Safeguarding Human Intelligence and Employment in Labor Displacement Act – or HF4369 – would ask employees to issue a notice to its employees labour representatives, the Minnesota Department of Labour and Industry, local officials as well as the regional office board, informing them of the layoffs 90 days in advance. 

This notice would ask employees to specify what technical progress is being made, how it will impact its employees and highlight the programmes in place to retain employees within the company. 

Companies with at least 50 full time workers in the state that are planning AI layoffs that will impact either at least 25 or at least 25% of workers – whichever number is lower – will have to follow these requirements if the law is passed. Failure to do so would lead to a fine of up to US$10,000 per employee. 

Upskilling requirements

HF4369 would also require employers to provide staff affected by job cuts with access to upskilling or retraining programmes to help them move into new positions within the company. 

David said that this would make it easier for employees to have “a just transition to new or continued employment,” with the 90 day notice period giving them a chance to build up skills. 

Many companies are looking to upskill their workforce as AI becomes more prevalent – such as Accenture, which has a yearly US$1bn investment in AI upskilling for staff that has helped train half a million workers. 

Employees have access to the company’s LearnVantage platform – which creates personalised learning pathways for staff – and can test out new solutions with AI sandboxes.

Many of those whose roles cannot be reskilled, however, have been impacted by layoffs. In 2025, the company reduced its headcount by 11,000 in a restructuring programme. 

Commenting on the layoffs in a discussion with analysts, CEO Julie Sweet said: “We are exiting on a compressed timeline people where reskilling, based on our experience, is not a viable path for the skills we need. 

We are investing in upskilling our reinventors, which is our primary strategy. Those we cannot reskill will be exited.”