On September 23, 2022, the New York City Department of Consumer and Worker Protection (DCWP) published proposed regulations regarding the city’s Automated Employment Decision Tools (AEDT) law, which goes into effect on January 1, 2023. As previously reported on Cooley’s cyber/data/privacy insights blog, the AEDT law will require employers and employment agencies in New York City to comply with an extensive series of requirements before using an AEDT in the hiring and promotion process. Among other things, employers will be required to:

• Complete an independent bias audit of the tool.
• Provide a publicly available summary regarding the audit and the distribution date of the tool.
• Give notice to candidates and employees who have applied for a position and reside in the city that the tool will be used – as well as the job qualifications and characteristics the tool will measure in assessing candidates – and permit candidates to request an alternative selection process or accommodation.
• Make available information about the source and type of data collected by the tool, and the employer’s data retention policy, unless disclosure of this information would violate law or interfere with a law enforcement investigation.

In enacting the AEDT law, New York City joined other jurisdictions, such as Illinois and Maryland, which regulate artificial intelligence-driven tools in the employment process, due to concerns of bias or disparate impact on certain groups.

Key definitions

The DCWP...

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