On July 5, 2023, the New York City Department of Consumer and Work Protection (DCWP) will begin enforcement of Local Law 144 (Law), which regulates employers' use of "automated employment decision tools" (AEDTs) to screen applicants or employees in New York City when making employment decisions. AEDTs use machine learning, artificial intelligence (AI) and other processes to assist employers in evaluating candidates for hire or promotion. In an effort to curb the risk that AEDTs may produce biased results, the Law prohibits employers and employment agencies from using AEDTs unless certain bias audit, notice and reporting requirements are met. The Law also authorizes civil monetary penalties for violations.
This alert summarizes the key provisions.
Local Law 144 makes it unlawful for New York City employers and employment agencies to use AEDTs to determine whether candidates should be selected or advanced in the hiring or promotion process unless (1) the AEDT is subject to a bias audit by an independent auditor before use and annually thereafter; (2) the results of the most recent bias audit and the AEDT's distribution date are published on the employer's or employment agency's website; and (3) notice is provided to applicants and employees who are subject to automated screening at least 10 business days before use of the AEDT. The Law only applies when an employer or employment agency is screening candidates for employment or employees for promotion....
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