As we recently reported, on December 9, 2022, the New York City Department of Consumer and Worker Production (“DCWP”) announced that it was postponing enforcement of the Automated Employment Decision Tools (“AEDT”) law, until April 15, 2023, due to the high volume of public comments it received regarding its proposed rules.

Today, December 23, 2022, DCWP issued a notice with updated proposed rules to the AEDT law and has scheduled another public hearing on Monday, January 23, 2023 at 11:00 a.m. Eastern Standard time. DCWP is accepting comments on the updated proposed rules through January 23.

As summarized by DCWP, the proposed changes include:

1. Modifying the definition of AEDT to ensure it is focused;
2. Clarifying that an “independent auditor” may not be employed or have a financial interest in an employer or employment agency that seeks to use or continue to use an AEDT or in a vendor that developed or distributed the AEDT;
3. Revising the required calculation to be performed where an AEDT scores candidates;
4. Clarifying that the required “impact ratio” must be calculated separately to compare sex categories, race/ethnicity categories, and intersectional categories;
5. Clarifying the types of data that may be used to conduct a bias audit;
6. Clarifying that multiple employers using the same AEDT may rely upon the same bias audit so long as they provide historical data, if available, for the independent auditor to consider in such bias audit; and
7. Clarifying that an AEDT may not be...

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