Seyfarth Synopsis: A new law in New York City restricts the use of artificial intelligence ("AI") to screen candidates for employment or promotion, and will take effect on January 1, 2023. Although employers have a year to prepare, those that intend to rely on AI during the hiring process after January 2023 must submit their AI tools to a "bias audit" now.
Companies that use AI as a component of their hiring process should be aware of a new law in New York City that goes into effect in early January 2023. AI tools can increase the speed and efficiency of candidate reviews. However, New York City's legislature, animated by concerns that bias may be embedded within AI tools, has regulated their use.
On November 10, 2021, the New York City Council passed a bill to restrict the use of "automated employment decision tools" to screen candidates for employment or promotion. In the absence of Mayor Bill de Blasio's signature, the bill lapsed into law thirty days later on December 10, 2021. The law will take effect on January 1, 2023.
The law will prohibit New York City employers or employment agencies from using automated employment decision tools which substantially assist or replace discretionary decision-making processes to assess job candidates unless the tool underwent a "bias audit" within a year before its use. The term "automated employment decision tools" is defined to include any automated process that uses machine learning, statistical modeling, data analytics, or...
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