Artificial intelligence (AI) has become increasingly common in the workplace, as AI tools allow employers to quickly and efficiently evaluate both prospective and existing employees. Just last year, the Equal Employment Opportunity Commission (EEOC) estimated that over 80% of employers use AI to assist in employment-related decision-making. Yet, regulation of workplace AI remains sparse. In New York City, that is set to change next month when the New York City Automated Employment Decision Tool Law (AEDT) will be enforced for the first time.
New York City first passed the AEDT in December 2021, making it unlawful for employers to use automated decision-making tools to screen individuals for employment decisions unless the law’s requirements regarding notice, bias audits and disclosure are satisfied. After lengthy opportunity for public comment and several delays of the law’s enforcement date, those requirements go into effect on July 5.
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Who Must Comply?
As a threshold issue, it remains unclear precisely to whom the AEDT applies. Employers located in New York City as well as employees or applicants residing therein are clearly covered. However, it is less clear whether the regulation also covers companies located outside the city but hiring NYC residents, or companies based in NYC but hiring...
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