Artificial intelligence (AI) is already driving workforce decisions at major companies, and health care practices, large and small, are not immune.

In this episode, Christopher Mayer, J.D., a specialist in employment law with the firm Frier Leavitt, explains how generative AI is being used to guide layoff decisions, why practice leaders can never simply accept what an AI tool recommends, and what the legal exposure looks like when AI-influenced reductions in force create disparate impact across protected categories. Mayer also addresses the near-total absence of federal AI regulation in the employment space, why the first jury trials over AI-driven layoffs could be damaging for employers, and where litigation is likely to land next. The conversation then turns to physician non-compete agreements.

Music Credits:
Warm Hands by Cephas - stock.adobe.com
A Textbook Example by Skip Peck - stock.adobe.com

Editor's note: Episode timestamps and transcript produced using AI tools.

0:00 – 0:33 | Sponsor message Copic Insurance.

0:33 – 0:52 | Cold open Mayer delivers the episode's central warning: you can't blindly accept what an AI tool tells you to do — you have to protect yourself from liability.

0:52 – 1:37 | Introduction Austin Littrell introduces the episode and previews the conversation with Mayer.

1:37 – 5:07 | How AI is reshaping workforce decisions Mayer describes two converging forces: employers using generative AI to drive layoff decisions, and AI disrupting entire job categories across industries. He notes that health care is relatively protected from AI job displacement given its patient-facing nature — but not entirely immune, citing Verizon and Amazon as examples of AI-driven workforce reductions.

5:07 – 7:19 | AI-related layoffs in health care so far Mayer says major AI-driven health care layoffs have been limited, pointing to Revere Health in Utah — which eliminated nearly 200 jobs, roughly 7% of its workforce, largely targeting medical coders. He explains why small practices are unlikely to trigger WARN Act requirements and why their layoffs tend to stay out of the headlines.

7:19 – 9:14 | How small practices are already using AI Mayer observes that small practice owners are often early AI adopters, using it for administrative and research tasks — not as a replacement for clinical judgment, but as a practical tool for running a lean operation.

9:14 – 14:01 | The HR and employment law intersection with AI Mayer explains the core compliance risk when AI influences a reduction in force: disparate impact across protected categories. He walks through the Age Discrimination in Employment Act requirements for group layoffs, why employers must build an employee census before proceeding, and why you can never simply accept what an AI tool tells you to do.

14:01 – 16:30 | Age, discrimination and the employee census Mayer clarifies how employers can know employee ages for compliance purposes, explains what an employee census looks like in practice and describes how small practices can conduct their own disparate impact analysis before proceeding with a reduction.

16:30 – 18:25 | Federal AI regulation: largely absent Mayer says meaningful federal AI regulation in the employment space doesn't yet exist. The current administration is broadly pro-AI and not focused on regulating it. California has moved at the state level, but the federal picture remains thin.

18:25 – 22:14 | Predicting the first AI employment lawsuits Mayer forecasts that challenges to AI-driven layoffs are inevitable — and that juries will likely be unsympathetic to employers who appear to have used AI as cover for discriminatory intent. He flags AI bias in tools like Grok as an early warning sign of what's coming.

22:14 – 23:04 | P2 Management Minute Keith Reynolds shares practice management tips and invites listeners to submit their own workflow ideas.

23:04 – 28:08 | The non-compete landscape for physicians Mayer traces the FTC's failed attempt at a federal non-compete ban, explains why state law now governs entirely, and walks through the spectrum: California's outright ban, Pennsylvania's new one-year cap and termination carve-out for physicians, and states like New Jersey and New York where enforceability depends heavily on geographic scope, duration and the judge.

28:08 – 31:06 | What physicians should do when presented with a non-compete Mayer's advice: don't sign without consulting an attorney. He also raises a nuance most physicians overlook — that a new employer's legal team can review an existing non-compete and potentially provide indemnification if the physician is sued by a former employer.

31:06 – 31:51 | The one thing physicians must never do Mayer warns that deceiving either a former or new employer about a non-compete — or hiding its existence — is the fastest way to create serious legal exposure.

31:51 – 32:49 | A message to primary care physicians Mayer closes with a note of optimism: don't be fearful of AI. For physicians in particular, he expects it will supplement care rather than replace it — and that over time it will be viewed as more positive than the current fear suggests.

32:49 – 34:10 | Outro Payerchin closes the interview. Littrell thanks listeners and reminds the audience to subscribe and visit MedicalEconomics.com and PhysiciansPractice.com.

S1 Ep138: AI, layoffs and the law, with Christopher Mayer, J.D., of Frier Leavitt

Off the Chart: A Business of Medicine Podcast

S1 Ep138: AI, layoffs and the law, with Christopher Mayer, J.D., of Frier Leavitt