Starting January 1, 2023, New York City will prohibit employers and employment agencies from using automated employment decision tools1 for employment decision in New York City unless the tools have undergone a bias audit within one year before the use of the tool, information about such audit is made publicly available on a website with a summary of the bias audit results and distribution date, and certain notices have been provided. The purpose of the audit is to assess the tool's disparate impact on women and minorities.2 (Local Law 144 of 2021; "AI Law").
Specifically, the AI Law requires any employers and employment agencies that use an automated employment decision tool to screen an employee or candidate who has applied for a position to notify that employee or job candidate—if they reside in New York City-- that an automated employment decision tool will be used to assess or evaluate their candidacy for hire or promotion, and the job qualifications and characteristics that will be used in assessing the candidate or employee. The notice must allow a candidate to request an alternative selection process or accommodation. Additionally, if information about the type of data collected for the automated employment decision tool, the source of such data and the employer or employment agency's data retention policy is not disclosed on the employer or employment agency's website, it must be made available to a candidate or employee within 30 days of a...
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