SF 4576 Minnesota Senate · 2025-2026 Regular Session

Notice and a transitional employment period required for employees displaced by artificial intelligence, and penalties imposed

This bill requires large Minnesota employers with 50 or more employees to give at least 90 days advance notice when artificial intelligence or automation is expected to displace workers, and it mandates a 90-day transitional period where affected employees receive continued wages and access to employer-funded retraining programs. The law defines technological displacement as job losses or significant hour reductions caused by AI or automated systems and applies to cases where 25 or more employees are affected or 25 percent of the workforce is impacted. Employers who fail to comply face penalties including ineligibility for state grants and tax incentives for five years, potential civil fines of up to $10,000 per violation, and liability for up to 60 days of back pay and benefits to affected workers.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2026

Committee Review

Floor Vote

Governor

Introduced Mar 18, 2026 Last action Apr 7, 2026

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What changed between versions

Introduction → 1st Engrossment · 7 edits · Apr 7, 2026

MODERATE

This bill was updated from its introduction to its first engrossment version, incorporating significant policy changes to strengthen protections for workers displaced by artificial intelligence. The primary updates include lowering the thresholds for mandatory notice and defining 'technological displacement' to cover smaller workforce reductions, adding exemptions for workers who transition to similar roles, and introducing new requirements for public reporting and penalty assessments.

Scope change

The bill's applicability was expanded by lowering the employee count and percentage thresholds for triggering notice requirements, and the scope of 'technological displacement' was broadened to include reductions in hours equivalent to 10% or more of workforce time.

DEFINITION

The definition of 'technological displacement' was changed to include a reduction in hours equivalent to ten percent or more of total workforce time, down from twenty-five percent.

REQUIREMENT

The minimum number of employees triggering the mandatory 90-day advance notice requirement was lowered from 25 to 10 employees.

A new exemption was added stating that covered employers are not required to provide notice if the displaced worker transitions to a position with the same or similar benefits and compensation.

A new reporting requirement mandates that the commissioner submit an annual report by February 15 to legislative committees detailing the number of covered employers meeting the notice threshold and summary data on affected workers.

ENFORCEMENT

The commissioner is now required to develop and provide notice templates for employers to use when issuing technological displacement notices.

The civil penalty for willful violations was updated to require that the fine be deposited into the workforce development fund, and the commissioner must now consider employer size and violation severity when determining the penalty amount.

TIMELINE

An effective date of January 1, 2027, was added to the legislation.

Floor votes

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No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2026

Upper · Passed

Comm report: To pass as amended and re-refer to State and Local Government

upper

Mar 18, 2026

Committee

Referred to Labor

upper

Mar 18, 2026

Introduced

Introduction and first reading

upper

1 primary · 1 co-sponsor