The New Jersey Artificial Intelligence Workforce Transition Act establishes a comprehensive five-year framework to address the labor market challenges posed by artificial intelligence (AI) technologies. The Act emphasizes collaboration among employers, educational institutions, and the state government to prepare the workforce for an AI-integrated economy, focusing on augmenting human workers rather than replacing them. Key provisions include requirements for employers to notify the Division of Wage and Hour Compliance about AI systems that may lead to job reductions, along with penalties for non-compliance. The Act also introduces a 15% allocation to a new AI Displacement Account within the Workforce Development Partnership Fund, which will fund programs for workers displaced by AI, and mandates annual skills forecast reports from employers to contribute to a statewide labor market dashboard.

Additionally, the legislation introduces various tax credits to incentivize workforce retention and retraining in the face of AI deployment. Employers can receive credits for maintaining employee headcount, covering retraining costs, and providing on-the-job training for displaced workers. The bill also establishes safety nets for displaced workers, including extended unemployment benefits, wage insurance, and training grants. It mandates the development of a modular credential framework to offer stackable credentials in high-demand fields and requires annual reporting on the Act's implementation and effectiveness. Overall, the legislation aims to mitigate the adverse effects of AI on employment while promoting training and employment opportunities in New Jersey.

Statutes affected:
Introduced: 34:15D-9