New York City’s Local Law 144 prohibits employers and employment agencies from using “automated employment decision tools” (AEDTs) to assess hiring and promotion decision unless such tools have undergone an independent bias audit and appropriate disclosures have been made. NYC’s Department of Consumer and Worker Protection (DCWP) proposed regulations last year and delayed enforcement of Local Law 144 to April 15, 2023, given the number of comments received. DCWP has since released an updated proposal that includes several impactful changes to an organization’s compliance. Public comments on the newest proposed regulations are due January 23, 2023.

Following its announcement delaying the enforcement of Local Law 2021/144 (LL144) to April 15, 2023, the DCWP released a second set of proposed regulations implementing LL144 (Updated Proposal). The Proposed Regulations address a number of ambiguities in the underlying statute and include several notable changes from the previous set of proposed regulations (Initial Proposal). We describe these changes below.

More Onerous “Independent Auditor” Requirements

The Updated Proposal has made it more challenging for a person to quality as an “independent auditor.” The Initial Proposal defined “independent auditor” as “a person or group that is not involved in using or developing an AEDT.” This definition would have provided greater flexibility for organizations to audit AEDTs by leveraging appropriate internal resources, such as...

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