In July, we wrote about New York City's Automated Employment Decision Tool Law (the "AEDT Law" or the "Law"), which requires employers to conduct an independent bias audit of their AI employment tools by January 1, 2023. On September 23, 2022, New York City's Department of Consumer and Worker Protection ("DCWP") released proposed rules (the "Proposed Rules") that would implement the Law, and which clear up some, but not all, of the Law's ambiguities. The Proposed Rules are now subject to a comment period ending on the day of DCWP's public hearing, which is October 24, 2022. DCWP will then publish the final rules at some point thereafter, hopefully before the AEDT Law comes into effect.

A. Limiting the Scope of an Automated Decision Tool

Under the AEDT Law, an "automated employment decision tool" ("AEDT") includes:

• any computational process derived from machine learning, statistical modeling, data analytics or artificial intelligence;
• that issues simplified output, including a score, classification or recommendation; and
• that substantially assists employment decisions being made by humans.

The Proposed Rules appear to narrow this definition in two ways.

First, the Proposed Rules would limit the scope of the Law to instances where the AEDT's output is the most important factor in the employment decision. The Proposed Rules provide that the phrase "to substantially assist or replace discretionary decision making" means "to rely solely on a simplified output (score, tag,...

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