On June 29, 2023, the New York City Department of Consumer and Worker Protection (DCWP) released an FAQ regarding the city’s Automated Employment Decisions Tool (AEDT) law. As we discussed in this October 2022 alert on proposed regulations and this May 2023 alert on final regulations, the AEDT law requires NYC employers (and employment agencies) 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. The FAQ clarifies some important points regarding the law, which are outlined below.
The law applies only to employers that use an AEDT “in the city.” The DCWP clarified that this means the law applies only where the job location involves working in an office in NYC, at least part time, or the job is fully remote, but the location associated with it is an office in NYC. Unfortunately, the agency did not provide clarity on how employers should determine whether a remote position is “associated with” an office in NYC.
The FAQ confirms that the law only applies when an AEDT is used to assess individuals who have actually applied for a specific position. Thus, the law does not apply where an AEDT is used to scan a résumé bank, conduct outreach to potential candidates or invite applications.
The FAQ clarifies that multiple employers can rely on...
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