The New York City Department of Consumer and Worker Protection (DCWP) adopted final rules for Local Law 144 on April 6, 2023. This landmark law prohibits employers from using automated employment decision tools (AEDTs) to evaluate job candidates or employees when making employment decisions, unless certain bias audit and notice requirements are met. Enforcement of the law will begin on July 5, 2023.
Covered Entities
Employers physically located in New York City, or that have job candidates or employees that reside in the city, fall within the scope of Local Law 144. Additionally, the law also applies to “employment agencies,” which are defined broadly and include, among other organizations, entities that, for a fee, render vocational guidance or counseling services, provide information about job search techniques or strategies, or assist applicants in presenting their credentials to employers.
Covered AEDTs
Under Local Law 144, an AEDT includes “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” in employment decisions. The law expressly excludes tools such as junk email filters, firewalls, antivirus softwares, calculators, spreadsheets, databases, data sets, or other compilations of data...
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