New York City’s Department of Consumer and Worker Protection (DCWP) is expected to begin enforcing the City’s novel artificial intelligence (AI) bias audit law on July 5, 2023. This law prohibits the use of automated decision tools in employment decisions within New York City unless certain bias audit, notice, and reporting requirements are met. The law’s definition of an automated employment decision tool includes any automated process that either replaces or substantially assists discretionary decision-making for employment decisions. For example, an automated process that screens resumes and schedules interviews based on such screening would be deemed an automated decision tool and subject to the law’s requirements. Conversely, an automated process that simply transfers applicant information from resumes to a spreadsheet, without otherwise scoring or ranking the applicants, would not be subject to the law’s requirements.
The AI law has taken a long, winding path to enforcement. While originally enacted in December 2021, the DCWP did not release proposed rules until September 23, 2022, after which commentators noted that they needed further guidance. In December 2022, DCWP released Revised Proposed Rules clarifying certain key terms, which were subsequently incorporated into the Final Rules released in April 2023. Although the law went into effect on January 1, 2023, enforcement was initially delayed until April 15, 2023, and then further delayed until July 5, 2023, due...
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