The New York City Department of Consumer and Worker Protection (DCWP) issued a Final Rule implementing New York City Local Law 144 (the AI Law) and announced July 5, 2023 as the new effective date for implementation and enforcement.
The AI Law makes it an unlawful employment practice for employers to use automated employment decision tools (AEDTs) to screen candidates and employees within New York City unless certain bias audit and notice requirements are met.
Following a lengthy notice and comment period and two rounds of proposed rules published in September 2022 and December 2022, on April 6, 2023 DCWP issued the Final Rule, which provides further guidance on the AI Law and establishes a new effective date when enforcement efforts will begin.
The AI Law makes it unlawful for an employer or employment agency to use an AEDT to screen candidates and employees unless (1) the tool has undergone a bias audit no more than one year prior to its use, (2) a summary of the most recent bias audit is made publicly available, and (3) notice of the AEDT use and an opportunity to request an alternative selection process is provided to each candidate and employee who resides in New York City.
The Final Rule is largely similar to the December 2022 proposed rule, with some notable alterations.
First, the AI Law defines an “AEDT” as any process “derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues...
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