The New York City Department of Consumer and Worker Protection (DCWP) has adopted final regulations regarding Local Law 144, the city's Automated Employment Decision Tools (AEDT) law. The DCWP will begin enforcing the AEDT law on July 5, 2023.

As we reported in an October 2022 client alert, the AEDT law requires New York City employers to comply with extensive requirements before using an AEDT, including completing an independent bias audit of the tool and providing notice regarding the tool to candidates and employees. Among other things, the final regulations:

• Modify the definition of "machine learning, statistical modeling, data analytics, or artificial intelligence" to expand the scope of covered AEDTs.
• Provide additional standards for the bias audit.
• Expand the scope of required information to be included in publishing results of a bias audit.

We discuss these developments in more detail below.

Broadened scope of covered AEDTs

The AEDT law defines an "automated employment decision tool" as "any computational process" that is "derived from machine learning, statistical modeling, data analytics, or artificial intelligence," and "issues simplified output," such as "a score, classification, or recommendation," that is "used to substantially assist or replace discretionary decision making" for employment decisions that impact people. The final rules eliminate an earlier requirement that the computer-based technique have "inputs and parameters ... refined through...

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