Local Law 144, New York City’s law governing the use of automated employment decision tools (“AEDTs”), became effective on July 5^th, approximately six months after its original effective date and following several rounds of hearings on its proposed and Final Rule. Just days prior, the New York City Department of Consumer and Worker Protection (“DCWP”) released a set of Frequently Asked Questions (“FAQs”) to provide guidance for covered employers regarding some of the many open questions that have been raised throughout the months since its regulations were first issued. While the FAQs provide some clarity, many questions remain.

Remote Positions

The FAQs clarify that Local Law 144 applies to AEDTs for jobs where:

• The job location is an office in NYC, at least part time;
• The job is fully remote but the location associated with it is an office in NYC; or
• The location of the employment agency using the AEDT is NYC.

At a roundtable held in May 2023, DCWP suggested that a remote position for an employer with office in multiple locations, including NYC, would require a “fact specific analysis” based on several factors to determine whether the law applied. Although the FAQs seem to depart slightly from this earlier guidance, they do not clarify how to determine whether a remote position is “associated with” an office in NYC.

AEDTs Used to Find Potential Candidates

Local Law 144 applies only to AEDTs used to assess candidates for hiring or promotion once they have applied for a...

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