On April 6, 2023, the New York City Department of Consumer and Worker Protection (“DCWP”) issued final rules covering the City’s Automated Employment Decision Tools (“AEDT”) Law that was enacted on December 11, 2021. With the issuance of the final rules, the DCWP also announced that enforcement of the law will be further delayed from April 15, 2023, to July 5, 2023, providing covered employers with additional time to comply with the recently announced requirements.

Summary

The AEDT law prohibits New York City employers and employment agencies from using AEDTs in their employment decision-making processes, unless the employer complies with several affirmative requirements before using any such tool. These preconditions include (i) conducting an annual bias audit; (ii) making the results of any bias audit(s) publicly available on the employer’s or employment agency’s website; and (iii) providing at least ten days’ notice to employees and job candidates that an AEDT will be used in connection with a specific position or assessment, and providing details concerning how an applicant or employee can request an alternative selection process (if one is available) or an accommodation under existing law.

Definitions

The final rules modify the definition of “automated employment decision tool” to expand its scope beyond the definition provided in prior versions of the proposed rules. The AEDT law defines the term “automated employment decision tool” as “any computational process,...

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