On April 6, 2023, the New York City Department of Consumer and Worker Protection (“Department”) issued its Final Rules regarding automated employment decision tools (“AEDT”). As previously reported, New York City’s AEDT law, Local Law 144 of 2021, prohibits employers and employment agencies from using AEDT unless:

• The tool has been subjected to a bias audit within a year of the tool being used or implemented;
• Information about the bias audit is made publicly available; and,
• Certain written notices have been provided to employees or job candidates.

Following the multiple public hearings and comments on the Department’s proposed rules from September and December of 2022, the newly issued Final Rules now govern the Department’s interpretation, and enforcement, of the AEDT law. Changes from the December 2022 proposed rules that are now present in the Final Rules include:

• Expansions to the scope of the AEDT law’s definition of “machine learning, statistical modeling, data analytics, or artificial intelligence;
• Adding the requirement that the bias audit indicate the number of individuals assessed by the AEDT that were not included in the audit’s calculations because they fall within an “unknown category” (and that the number be listed in the bias audit results summary);
• Permitting independent audits to exclude a category that comprises less than 2% of the data being used for the bias audit’s impact ratio calculations;
• Examples of a bias audit;
• Guidance on when an employer or...

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