On Friday, September 23rd, the New York City Department of Consumer and Worker Protection issued a Notice of Public Hearing and Opportunity to Comment on Proposed Rules (“Proposed Rules”) related to Local Law 144 (“the Law”), a New York City law regulating the use of “automated employment decision tools” by employers, set to go into effect January 1, 2023.
Definitions
Substantially assist or replace discretionary decision
The Proposed Rules provide explanatory definitions which narrow some of the more broadly worded language in the Law. The Law defines the term “automated employment decision tool” to mean “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that impact natural persons.” The Proposed Rules define the critical phrase “to substantially assist or replace discretionary decision making” to a narrow set of circumstances where a decision maker: i) relies “solely” on the output of the tool (“score, tag, classification, ranking, etc.”), with no other factors considered; ii) considers the tool’s output in making the decision, weighted more than any other criteria considered, or iii) uses the tool’s output to overrule or modify conclusions derived from other factors. Therefore a tool is likely not covered...
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