On September 23, 2022, the New York City Department of Consumer and Worker Protection (DCWP) proposed additional rules relating to Local Law 144 of 2021, which will regulate the use of automated employment decision tools starting January 1, 2023. The newly proposed rules provide much-needed clarity on key gaps within Local Law 144. The comment period is now open, with a public hearing set for October 24, 2022. Stakeholders may provide written comments or seek to testify orally by way of the DCWP’s website.

Briefly, the proposed regulations published by the DCWP:

• Define and limit the scope of the “substantially assist or replace” standard for the applicability of “automated employment decision tools” (AEDTs), making it clear that an AEDT is covered under the law where it is used as a dispositive decision criterion or to modify a conclusion derived from other factors, including human decision-making;

• Clarify that a “candidate for employment” means an individual who has applied for a specific employment position and has provided necessary information (such as a resume or application form); this appears to be intended to limit the application of the law to candidates who may have been considered in a search but have not expressed interest in or applied for a given job;

• Add significant detail on the structure and content of the bias audit required by the law, including requirements that employers calculate the selection rate of an AI tool based on race, ethnicity, and...

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