The new NAFTA? US labor unions push state laws to restrict AI in workplaces

Today in Obvious: Labor unions across the United States are mobilizing to push state-level legislation that would restrict how artificial intelligence is deployed in workplaces, targeting everything from autonomous vehicles to AI-powered hiring decisions. This coordinated effort comes after federal attempts to regulate AI stalled, leaving states as the primary battleground for determining how workers will be protected from potential job displacement and algorithmic bias.

The big picture: The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), a federation of 63 national and international labor unions, launched a national task force last month to work with state lawmakers on AI regulation, treating this as a defining moment similar to how NAFTA reshaped American employment in the 1990s.

• Lorena Gonzalez, the AFL-CIO task force co-chair, warned that “we cannot allow AI and technology to be our next NAFTA,” referencing how the trade agreement drove manufacturing jobs to Mexico.
• The push gained urgency after the Senate killed a proposed federal moratorium that would have banned states from regulating AI for 10 years.

Key legislative efforts: Several states are advancing union-backed bills targeting specific AI applications that could affect workers.

• Massachusetts Teamsters are supporting legislation requiring autonomous vehicles to have human safety operators who can intervene during rides, effectively blocking fully driverless operations.
• Oregon passed a bill prohibiting AI systems from using the title “nurse” or associated abbreviations.
• California is considering legislation that would prevent employers from relying primarily on AI for decisions like terminations or disciplinary actions, requiring human review instead.

What they’re saying: Union leaders frame this as essential worker protection, while tech industry groups argue it could stifle innovation.

• “We can’t just be the Wild West where tech companies can experiment on our roads unregulated,” said Massachusetts State Senator Paul Feeney, who introduced the autonomous vehicle bill.
• Tom Mari, president of Teamsters Local 25, accused Waymo of “steamrolling into cities throughout our country without concern for workers or residents” to “make trillions of dollars by eliminating jobs.”
• Rob Atkinson of the Information Technology and Innovation Foundation, a tech industry trade group, countered that “the AFL-CIO’s efforts to limit AI-driven productivity will only lead to slower wage and economic growth.”

Why worker anxiety is driving action: Recent polling shows significant concern about AI’s impact on employment opportunities.

• A February Gallup survey found one-third of U.S. workers fear AI will reduce job opportunities.
• AI has already become a contentious issue in labor disputes, including the 2023 Hollywood writers strikes.

The regulatory landscape: With President Trump rolling back Biden-era AI rules and signaling support for tech industry freedom, unions are focusing their efforts on state-level protections.

• The AFL-CIO task force plans to develop model legislation for states, drawing from proposals in California and Massachusetts.
• Seth Harris, former Labor Secretary under Obama, called this “the critical moment, not only for AI guardrails, but for collective bargaining over AI in workplaces and industries.”