The rise of artificial intelligence and other computer-based, data-driven decisions may seem attractive to employers looking to parse a deep pool of qualified candidates. But concerns that biases may affect these automated decisions has led New York City to impose requirements on their use. Last week the New York City Council passed a bill requiring employers to take certain steps before implementing an “automated employment decision tool.” The law becomes effective on January 1, 2023.
What Is an Automated Employment Decision Tool?
An automated employment decision tool is some form of “computational process” that “issues a simplified output,” such as a score, classification, or recommendation, which is then used to substantially assist or replace discretionary decision-making processes for hiring or promoting employees within New York City. The law does not apply to other employment decisions, such as retention or termination. Examples of a computational process that qualifies under the law include “machine learning, statistical modeling, data analytics, or artificial intelligence.” The law specifically excludes junk email filters, firewalls, antivirus software, calculators, spreadsheets, databases, and data sets.
What Steps Must be Taken if an Employer Is Using an Automated Employment Decision Tool?
The new law will require employers using automated employment decision tools to take the following actions:
Step 1: Conduct a Bias Audit
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