New York City employers will soon be required to take a number of affirmative steps before using artificial intelligence (AI) in their employment decision-making processes. The automated employment decision tools (AEDT) law, passed by the New York City Council as Local Law Int. No. 1894-A, is aimed at protecting job candidates and employees from unlawful discriminatory bias based on race, ethnicity or sex when employers and employment agencies use AEDTs as part of employment decisions.
Although the law originally was scheduled to be effective January 1, 2023, the Department of Consumer and Worker Protection (DCWP) recently announced that itwill begin enforcement on July 5, 2023, and published its Notice of Adoption of the Final Rule.
The law applies to all employers and employment agencies in New York City that use AEDTs to screen candidates or employees for positions located in the city and requires notice to residents for such positions. It does not apply to positions outside of New York City even if city residents apply for the position. As for fully remote positions, the law applies only if an employer has a New York City office, and it may apply to employers with physical locations both inside and outside of New York City depending on a "fact-specific" analysis of the position at issue, including how often work is completed in the city, whether work is performed for the city location and whether in-office work in the city will ever be...
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