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Wednesday, September 30, 2026

NYC Proposes Rules in Advance of 2023 Automated Employment Decision Tools Law - Mintz

For years, employers have been exploring the possibility of how automated tools (ranging from basic computer screening methods to advanced artificial intelligence systems) may be able to improve and simplify the hiring process and other employment evaluation processes. Automated tools employers use today include resume scanners that prioritize applications based on certain content; employee monitoring software that analyzes employee performance; virtual assistants and video technologies that evaluate candidates’ mannerisms and other characteristics, sometimes known as “Chatbots”; and other “job fit” algorithms programmed to evaluate the likelihood of an individual’s success in a certain position. For New York employers, most of these tools are about to be regulated unlike ever before.

Effective January 1, 2023, New York City employers will be prohibited from using artificial intelligence in employment decision-making processes unless they take a number of specific and affirmative steps prior to doing so, including a bias audit of the tool. These requirements have emerged following the passage of New York City Local Law 144 in December 2021, which creates a specific regime employers must adhere to in order to utilize automated employment decision tools, which the City has referred to as “AEDTs”. Specifically, employers must: (1) subject AEDTs to a bias audit within one year of its use; (2) ensure that the results of such audits are publicly available; (3) provide particular...



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