New laws in New York City and California regulating the use of AI and personal data are set to go into effect Jan. 1, 2023 — and and while enforcement has been delayed, they’ll have far-reaching effects outside of those jurisdictions, experts say.
In New York, Local Law 144 will regulate how companies can use automated employment decision tools, namely by requiring a bias audit before any tool can be used and a notification to job applicants and employees before its use.
And, on the other coast, the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act, expands the data privacy law to cover employees, job applicants, independent contractors and the operations between businesses. A previous exemption that excluded employee data from the CCPA sunsets at the end of the year.
Despite being local and state laws, both new pieces of legislation extend to employers with job applicants or workers who are residents of New York City or California. And, in the age of remote work, that number is growing.
“If they don’t have California employees, a lot of companies think they’re off the hook. They’re not,” said April Goff, a partner in the Dallas office of law firm Perkins Coie.
The enforcement of both laws has been delayed, until April 15, 2023, in New York City and July 1, 2023, for the CCPA in California, and regulations have yet to be issued. But that doesn’t mean employers have time to waste, lawyers say.
“If they don’t come until April or May,...
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