S8706-B (Hinchey)/A9581-B (Bronson)

STAFF CONTACT :

Frank Kerbein
Director, Center for Human Resources
5184557180

BILL

S8706-B (Hinchey)/A9581-B (Bronson)

SUBJECT

Requires covered businesses to annually report to the department of labor regarding the impact of artificial intelligence on hiring and the nature of artificial intelligence use

DATE

Oppose

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S8706-B (Hinchey)/A9581-B (Bronson) mandates that businesses that employer more than 50 employees and publicly traded companies submit an intensive, annual report to the New York State Department of Labor (NYSDOL) tracking the impact of artificial intelligence (AI) on employment metrics, displacement figures, human oversight, and data privacy safeguards. While we understand the sponsor’s intent to monitor shifting labor dynamics, this bill establishes an overly broad, logistically unfeasible, and duplicative regulatory scheme that will uniquely harm New York’s economic competitiveness. On behalf of the more than 3,200 members of The Business Council of New York State, we urge lawmakers to reject this burdensome proposal for the following reasons:

1. Creates an Undefined and Severe Administrative Burden

  • Vague Metrics: The bill requires an estimation of employees displaced or hired "due in full or in part to increased use of artificial intelligence". Disentangling AI implementation from broader macroeconomic factors, routine restructuring, or standard market shifts is statistically speculative and operationally impossible for businesses to track accurately. 
  • Scope Creep: S8706-B (Hinchey)/A9581-B (Bronson) grants the NYSDOL open-ended authority to "develop additional reporting requirements" at will. This provides a blank check for administrative expansion, leaving employers facing unpredictable compliance targets year over year.

2. Weaponizes Subjective Data Against Employers

  • Punitive Nature: By tying ambiguous metrics directly to heavy statutory penalties, the state is punishing businesses for failing to report data that cannot be cleanly isolated or quantified.
  • Chilling Effect on Innovation: Forcing companies to document their internal AI deployment objectives, length of use, and operational structures creates an unnecessary chilling effect on tech adoption. This slows down efficiency improvements that are vital for sustaining large enterprise operations in New York.

3. Risks Exposing Proprietary Business Practices and Trade Secrets

  • Public Exposure: The bill requires detailed public-facing compilation reports by the NYSDOL based on company submissions. Even with promised aggregations, requiring companies to disclose operational strategies, data protection metrics, and software utilization frameworks risks exposing proprietary technological workflows to market competitors.

4. Redundant in Light of Imminent Federal Preemption

  • Regulatory Conflict: As reported by Spectrum News, Congress is actively advancing federal, bipartisan frameworks designed to govern AI use across commercial markets. Passing a state-specific reporting mandate creates an expensive, short-lived compliance structure that will likely be superseded by federal law, complicating the operational landscape for interstate businesses.

Conclusion

S8706-B (Hinchey)/A9581-B (Bronson) positions New York as an overly punitive environment for tech integration, encumbering employers with speculative data requirements while offering no tangible path to workforce development. Rather than fostering collaborative workforce transition strategies, it imposes rigid red tape.

For the reasons stated above, The Business Council, on behalf of our members, strongly oppose the enactment of S8706-B (Hinchey)/A9581-B (Bronson).