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Monday, September 14, 2026

How employers can prepare for New York City's AI law - Employee Benefit News

As technology has advanced, companies have increasingly turned to automated hiring tools to help them pick the right person for the job faster and with more certainty. But do employers know whether their hiring tools come with gender and racial biases built within their systems?

New York City's Local Law 144 requires them to find out.

Local Law 144, otherwise known as New York City's AI law, regulates the use of automated employment decision tools, or AEDTs, making it unlawful for employers to use hiring and promotion tools that have not been annually audited by an independent party for glaring biases. New York City's Department of Consumer and Workplace Protection will begin to enforce Law 144 on July 5, 2023, six months after the AI law was supposed to go into effect. Yet, even with the extended deadline, employers still have their work cut out for them.

Read more: No more ChatGPT? Here's what the 'pause' on generative AI means for the workplace

From identifying whether their hiring tool is considered an AEDT and acquiring an independent auditor, to being prepared to offer candidates and employees subjected to an AEDT assessment an alternative process upon request, Local Law 144 comes with a host of compliance challenges — but the law is ultimately trying to minimize discriminatory hiring practices, underlines Daniel Kadish, an associate in the labor, employment and benefits practice at law firm Morgan Lewis

"One of the biggest concerns New York City is trying to...



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