Minnesota Bill Targets AI-Driven Business Displacement

As artificial intelligence reshapes the way businesses operate, anxiety among employees is reaching critical levels. According to research from Reuters and Ipsos, 71% of Americans are concerned that AI will cause permanent job loss. With 54,000 people losing their jobs due to AI-related layoffs this year, business leaders face mounting pressure to balance technological advancement with workforce stability.

Minnesota is positioning itself at the forefront of this challenge. A newly proposed bill, currently under consideration, would legally require a 90-day transitional period before AI replaces workers, including paid notice for employees and upskilling opportunities. For C-suite executives operating in the state, this legislation could fundamentally alter how they approach automation strategies.

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. "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." He said.

Leading through transparency requirements

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

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

Businesses 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 could lead to a fine of up to US$10,000 per employee.

Strategic development expectations

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 progress in the business and their wider career.

Many leaders are looking to upskill their workforce as AI becomes more prevalent. Accenture, for instance, has a yearly US$1bn investment in AI training for staff that has helped develop 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. Earlier this year, Accenture reduced its headcount by 11,000 in a restructuring programme.

Commenting on the layoffs in a discussion with analysts, Chief Executive Officer Julie Sweet says: "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."