As previously reported, employers’ use of artificial intelligence to assist in employment decision-making is being subjected to ever-increasing regulatory scrutiny at all levels of government―local, state, and federal. In the New Jersey General Assembly, A4909 (“A4909”) was introduced on December 5, 2022, proposing a host of legal requirements that would apply to automated employment decision tools. On January 9, 2023, New York State introduced State Assembly Bill A00567 (“A00567”), modeled after New York City’s recently passed Automated Employment Decision Tool Law, set to go into effect on April 15, 2023. If enacted, the New York State Law would prohibit the use of certain automated employment decision tools unless employers take affirmative steps to screen the technology, including running a bias audit. (Preliminary indications from the rulemaking process suggest that Rules issued under the New York City law may substantially limit its impact by narrowly defining which tools are covered.)
New Jersey: A4909
A4909 seeks to regulate the sale and use of “automated employment decision tools.” The bill defines these as “any system the function of which is governed by statistical theory, or systems the parameters of which are defined by systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests, and other learning algorithms, which automatically filters candidates or prospective candidates for hire or for any term,...
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