New York City employers who use automated employment decision tools (“AEDTs”) now have until April 15, 2023, to prepare for compliance with New York City Local Law 144 which regulates usage of such tools. The law was to go into effect on January 1, 2023.

In the below post, we provide a brief overview of the law and its current rulemaking process.

Local Law 144 applies to employers and employment agencies in New York City who use AEDTs to screen applicants for employment or employees for promotional opportunities within the city. An AEDT is defined to mean “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that impact natural persons.”

The law makes it unlawful for an employer or an employment agency to use an AEDT to screen a candidate for employment or employee for promotion unless:

• The AEDT has been the subject of a bias audit conducted no more than one year prior to the use of such tool; and
• The employer or employment agency publishes on its website a summary of the results of the most recent bias audit as well as the distribution date of the AEDT to which such audit applies.

A bias audit is an impartial evaluation by an independent auditor that includes testing of the AEDT to assess its disparate...

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