Employers and employment agencies in New York City that currently utilize, or expect to utilize, automated tools to make employment decisions may wish to begin planning now for restrictions that will take effect on January 1, 2023, concerning the types of tools that may be utilized and the disclosures concerning such tools that must be provided to candidates for employment or promotions.
What Is an “Automated Employment Decision Tool”?
Under the New York City law, an “automated employment decision tool” is broadly defined as “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence (AI), 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 defines an “employment decision” as the act of screening “candidates for employment or employees for promotion within [New York City].” The law does not apply to the use of a tool that “does not automate, support, substantially assist or replace discretionary decision-making processes and that does not materially impact natural persons, including, but not limited to, a junk email filter, firewall, antivirus software, calculator, spreadsheet, database, data set, or other compilation of data.”
What Limitations Will Exist Concerning the Use of Automated Employment Decision Tools?
The law specifies...
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