Effective July 5, 2023, New York City now requires employers or employment agencies that use automated employment decision tools ("AEDTs") to submit those AEDTs to periodic bias audits, to make information about the bias audit publicly available, and to provide certain notices to job candidates or employees. On June 29, 2023, the New York City Department of Consumer and Worker Protection (DCWP) released a set of frequently asked questions (FAQs) to provide guidance about the new law.1 A key takeaway from the law, known as New York Local Law 144, is that employers and employment agencies who use AEDTs must adhere to audit and disclosure requirements. Failure to do so runs the risk of prospective enforcement actions.
An AEDT replaces or "substantially assist[s]" "discretionary decision making" in hiring or other employment-related decisions by relying on factors generated by a machine (likely using artificial intelligence algorithms). The FAQs and Rules provide detailed definitions of machine learning, statistical modeling, data analytics and artificial intelligence that generate predictions of a job candidate's "fit or likelihood of success" based on inputs and that therefore qualify as AEDTs.
The statute applies to employees who will work (at least part time) in New York City or who will work remotely outside of the New York City when the location associated with the position is an office in New York City. It also applies to...
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