As artificial intelligence and robotics move from science fiction to the office floor, the Maryland General Assembly is grappling with the difficult question of who pays for the human cost of automation.
House Bill 314, also known as the Automation Technology Deployment Assessment, was introduced by Delegate Vaughn Stewart to create a safety net for workers displaced by the very technology intended to increase efficiency. While the bill was recently withdrawn by its sponsor as of February 17, 2026, its introduction signals a major shift in how Maryland may regulate the AI revolution in the coming years.
The proposed legislation provided a roadmap of the compliance hurdles that may be on the horizon for any firm or company utilizing artificial intelligence, machine learning, or robotics. The proposal specifically targeted covered employers, defined as those with one hundred or more employees in Maryland. Under the bill’s provisions, an employer would be triggered into compliance if they reduced their workforce by at least ten employees in a calendar year while simultaneously deploying or using automation technology that contributed to those reductions.
The most controversial aspect of the bill involved the creation of the Displaced Employee Retraining Fund.
The legislation proposed an assessment of $900.00 per displaced employee, with these funds used by the State to support job placement and retraining programs. However, the bill offered a significant incentive for proactive corporate responsibility. Employers could reduce this assessment by fifty percent if they provided at least twelve weeks of severance pay, offered certified retraining or redeployment within the company, or successfully placed the employee in a new job elsewhere.
Even though the bill was withdrawn this session, the concept of an automation tax is unlikely to disappear.
For Maryland businesses and employees, this legislative trend highlights several important takeaways. The bill defined automation technology very broadly, encompassing any artificial intelligence or machine learning system implemented with the substantial effect of replacing human labor. This could apply to everything from self-checkout kiosks to sophisticated legal document review software. Furthermore, the reporting requirements would have necessitated annual reports to the Secretary of Labor detailing the types of technology used and the specific number of employees affected, creating a new layer of algorithmic transparency.
Legislators are increasingly viewing workforce displacement not just as a private business decision, but as a social cost that the private sector may need to help subsidize. The bill serves as a harbinger for the future. Refined versions of this legislation will likely reappear in future sessions as the General Assembly seeks to balance innovation with economic stability.
If you are facing workplace changes due to AI or automation, contact the employment lawyers at Potomac Legal Group. Our attorneys specialize in employment law matters, in Maryland, Virginia, and Washington, DC.
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