Starting Wednesday, July 5th, employers in New York City must comply with Local Law 144 and Department of Consumer and Work Protection (DCWP) Rules regulating the use of Automated Employment Decision Tools (AEDT) found in software used during the application or promotion process. The law and regulations govern AEDT, which is defined as any process that is “derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making.”
To comply with these new requirements, Employers first need to determine if any of the software their HR professionals use during the hiring or promotion process utilizes an AEDT to either “substantially assist or replace discretionary decision-making” by humans to “score,” classify, or recommend NYC candidates or employees. The NYC law is broader than the laws that Illinois and Maryland enacted several years ago governing the use of facial-recognition software in the hiring process, and covers software that HR departments commonly use during the hiring and promotion processes.
If software using AEDT is used, employers must: (1) confirm that a bias audit has been conducted; (2) provide at least 10 days’ notice to the applicant or employee that software utilizing AEDT is being or will be used; (3) explain the qualifications the AEDT will use during the assessment;...
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