Why state law matters
Federal labor law provides baseline protections for most private-sector workers. But many states have enacted their own laws that go further — lower thresholds for mass layoff notice, restrictions on non-compete agreements, stronger privacy protections, and even AI-specific regulations that are beginning to emerge.
When the NLRB is weakened (as it currently is), state-level protections become even more important. They provide alternative enforcement mechanisms that don't depend on the federal Board.
Federal baseline (applies everywhere)
NLRA: Right to organize, concerted activity, discuss wages/conditions, protection from retaliation. Enforced by the NLRB.
Federal WARN Act: 60 days written notice for mass layoffs of 50+ workers at companies with 100+ employees.
ADEA: Protections against age discrimination for workers 40+. Relevant to AI restructuring if older workers are disproportionately affected.
States with stronger protections
California
Enhanced WARN Non-Compete Ban Privacy AI RegulationCal-WARN Act: Covers employers with 75+ employees (vs. 100 federal). Triggered by layoffs of 50+ workers with no 33% threshold. Covers relocations. Same 60-day notice requirement.
Non-compete ban: Non-compete agreements are largely void and unenforceable. As of 2024, employers cannot even require employees to sign them — and existing agreements are unenforceable regardless of where they were signed.
CCPA/CPRA: Gives employees the right to know what personal data their employer collects, including data from AI monitoring systems. Right to delete in some circumstances.
AI governance (emerging): California has been a leader in proposing AI-specific employment regulations. Several bills addressing automated decision-making in employment have been introduced. Check the state legislature for current status.
New York
Enhanced WARN AI RegulationNY WARN Act: Requires 90 days notice (vs. 60 federal). Covers employers with 50+ employees (vs. 100 federal). Significantly broader coverage.
NYC AI Hiring Law (Local Law 144): Requires employers using AI in hiring and promotion to conduct annual bias audits and provide notice to candidates. While this primarily applies to hiring, it establishes a regulatory framework for AI in employment that may expand.
Strong labor enforcement: The New York Attorney General's office has been active in enforcing worker protection laws, providing an additional enforcement pathway beyond the NLRB.
Illinois
Enhanced WARN Privacy AI RegulationIL WARN Act: Covers employers with 75+ employees. Triggered by layoffs of just 25+ workers (much lower than the federal 50). Requires 60 days notice.
BIPA (Biometric Information Privacy Act): Among the strongest biometric privacy laws in the country. If your employer uses AI systems that collect biometric data (facial recognition, voice analysis, keystroke dynamics), BIPA requires informed consent and carries significant penalties for violations. Private right of action — you can sue.
AI Video Interview Act: Employers using AI to analyze video interviews must disclose the use of AI, explain how it works, and obtain consent.
New Jersey
Enhanced WARNNJ WARN Act (effective 2023 revision): Requires 90 days notice and covers employers with 100+ employees. The key difference: if the employer fails to give proper notice, they must provide one week of severance pay per year of service. This is among the strongest WARN Act remedies in the country.
This mandatory severance provision makes NJ particularly important for long-tenured workers affected by AI restructuring.
Colorado
AI Regulation PrivacyColorado AI Act (SB 24-205): Enacted in 2024, this is one of the most comprehensive state AI laws in the country. It imposes obligations on developers and deployers of "high-risk" AI systems, including those used in employment decisions. Employers must provide notice when AI is used in consequential decisions and allow consumers to appeal.
Colorado Privacy Act: Gives employees certain rights regarding personal data collected by employers, including data from automated profiling.
Minnesota
Non-Compete BanNon-compete ban (effective 2023): Non-compete agreements are void and unenforceable for all employees. Employers cannot require them as a condition of employment. This gives Minnesota workers more freedom to move to competitors if their current employer's AI restructuring pushes them out.
Oregon
Non-Compete LimitsNon-compete restrictions: Non-competes are limited to 12 months, only enforceable against employees earning above a specified annual threshold, and the employer must give notice at least 2 weeks before employment begins. Significant limitations that benefit workers transitioning out of AI-affected roles.
Washington State
Non-Compete LimitsNon-compete restrictions: Non-competes are unenforceable against employees earning less than approximately $116,593/year (threshold adjusts annually). For independent contractors, the threshold is approximately $291,483. Employers who attempt to enforce void non-competes face penalties.
Wisconsin & Tennessee
Enhanced WARNWisconsin: Covers employers with 50+ employees (vs. 100 federal). Triggered by layoffs of 25+ workers. 60-day notice requirement.
Tennessee: Covers employers with 50-99 employees — filling the gap below the federal 100-employee threshold. Requires notification to the state commissioner.
This list is not exhaustive. Labor and employment law is changing rapidly, especially around AI. Maine, Iowa, Maryland, New Hampshire, Massachusetts, Connecticut, and other states have additional protections that may be relevant to your situation. Your state's labor department website and an attorney licensed in your state are the best sources for current information.
Multiple protections can overlap. If you work in California for a company headquartered in New York with operations in Illinois, different state laws may apply to different aspects of your situation. An employment attorney can help you identify which protections are strongest for your circumstances.
What this means for you
If you are in a state with enhanced protections, your leverage in an AI-driven restructuring is stronger than the federal baseline alone would suggest. Specifically:
Lower WARN Act thresholds mean that layoffs your company might think are too small to trigger notice requirements may in fact require 60 or 90 days written notice under state law — with financial penalties for violations.
Non-compete bans or restrictions mean that if your employer's AI restructuring pushes you out, you may be free to move to a competitor immediately, regardless of what your employment agreement says.
AI-specific regulations mean that employers using AI in employment decisions face disclosure, transparency, and fairness requirements that did not exist even two years ago. These are new tools workers can use.
Privacy laws mean that AI monitoring systems your employer has deployed may require your consent, and you may have the right to know what data is being collected about you.