New York City (NYC) has delayed to April 15, 2023 the enforcement of its first-of-its-type law on bias in artificial intelligence (AI) tools used in employment. Local Law 144 of 2021 prohibits employers in NYC from using artificial intelligence (specifically referred to as “automated employment decision tools,” or AEDTs) to screen candidates for hiring or promotion unless the employers first conduct an audit to determine whether there is bias present in the tool. The audit must be conducted by an independent auditor that has no prior connection to either the AEDT or the employer or vendor. Employers must notify candidates that they use an AEDT, which qualifications the AEDT assesses, the types and sources of data the business collects for the AEDT, and its data retention policy, and must provide the candidates with an opportunity to request an alternative selection process or accommodation, if available. The employer must also publish the results of the bias audit on its website.
On September 19, 2022, the New York City Department of Consumer Affairs and Worker Protection (DCWP) issued proposed rules aimed at clarifying and expanding on the law. On December 23, 2022, DCWP released Revised Proposed Rules in response to the high volume of comments DCWP received on their proposal. The Revised Proposed Rules made some significant changes to the initial rule proposal. As of the date of this alert, the rules have not been finalized.
Under the Revised Proposed Rules, the AEDT...
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