The Great Resignation of 2021 and 2022 has spawned what we are calling "The Great Rehire." To sort through the deluge of new applicants, many employers have become more reliant on technology such as artificial intelligence and automated employment decision tools (AEDT).
If you are using AI and/or AEDT, beware. Starting January 1, 2023, New York City employers will be subject to one of the most sweeping regulations governing AEDT to date.
Local Law 144 prohibits employers from using AEDT in hiring or promotion decisions unless they have taken several affirmative steps, including conducting a bias audit. This may include tools like resume-scanning software and more advanced "chatbots" and "job-fit" algorithms.
To help clarify the law's many ambiguities, workplace regulators issued proposed regulations. The notice-and-comment period was originally set to end this week, but the city was unable to hold a virtual public hearing after too many participants joined the Zoom room and overwhelmed the system. The city rescheduled for November 4th and will continue to accept public comments until then. In the lead up to this law, here's what employers need to know to get into compliance:
The law covers employers and employment agencies that use AEDT in New York City and candidates and employees who reside in the City. However, New York is one of three jurisdictions leading the charge on employment AI legislation and is likely to seek influence beyond its...
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