Our Venable colleagues recently wrote on the proliferation of artificial intelligence in employer hiring practices and the Equal Employment Opportunity Commission's (EEOC) guidance relating to avoiding discriminating against candidates on the basis of a disability. Starting on January 1, 2023, New York City employers that utilize artificial intelligence (AI) decision-making tools in their hiring practices will need to provide notice to applicants of the technology and conduct independent bias audits to ensure that these tools do not have a discriminatory impact on candidates. This alert will take a deeper dive into the requirements of the law and recommend best practices to ensure compliance.

Local Law Int. No. 1894-A

Local Law Int. No. 1894-A ("the Law") was enacted by the City Council on December 11, 2022. The Law, which is the first of its type in the nation, requires that employers and hiring agencies that use any "automated employment decision tool":

• Conduct a yearly "bias audit" of the tool and publish the results of the audit on the employer's website;
• Provide ten days' notice to candidates of the qualifications and characteristics that AI will be looking for, and allow them to request an alternative selection process; and
• Upon written request, make available "the type of data collected for the automated employment decision tool, the source of such data and the employer or employment agency's data retention policy."

An "automated employment decision tool" is...

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