On July 5, 2023, the New York City Department of Consumer and Worker Protection (DCWP) began enforcement of Local Law 144 of 2021 which regulates the use of artificial intelligence (AI) screening tools by employers that was originally scheduled to take effect on January 1, 2023, according to a message on the DCWP website.
The DCWP Rule prohibits employers and employment agencies from using an Automated Employment Decision Tool (AEDT) unless the tool has been subject to a “bias audit” within one year of the use of the tool, information about the audit is made publicly available, and certain notices are provided to employees or job candidates.
Under Local Law 144 of 2021, an AEDT can be defined as “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation” used for making employment decisions.
Violations of the provisions of the law will be subject to a civil penalty of not more than $500 for the first violation and each additional violation occurring on the same day as the first violation, and not less than $500 nor more than $1,500 for each subsequent violation. A copy of the DCWP Rule is available here.
Employment Screening Resources (ESR) is a service offering of ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar offers ...
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