The New Jersey Artificial Intelligence Workforce Transition Act establishes a comprehensive five-year framework to address the labor market impacts of artificial intelligence (AI). The legislation aims to mitigate potential structural unemployment by fostering collaboration among employers, educational institutions, and the state government. Key provisions include the creation of an "AI displacement account" within the Workforce Development Partnership Fund, which will receive 15% of the fund's deposits to support workforce transition programs. Employers are required to notify the state of significant layoffs due to AI adoption, and penalties for non-compliance are outlined, along with protections for workers who report violations. The act also introduces a certification process for AI-displaced workers, allowing them to access extended unemployment benefits and training grants.

Additionally, the bill introduces various tax credits to incentivize businesses to retain and retrain employees in the face of increasing automation. These include a human retention tax credit for maintaining workforce levels, a same-firm retraining tax credit covering 100% of retraining costs, and an on-the-job training tax credit for hiring displaced workers. The legislation mandates the development of a modular credential framework to provide stackable credentials in high-demand fields and enhances apprenticeship programs. To ensure accountability and effectiveness, the bill includes provisions for annual reporting, interim reviews, and a sunset clause, requiring legislative reauthorization after five years.

Statutes affected:
Introduced: 34:15D-9