Starting July 5, New York City’s Automated Employment Decision Tool law requires employers that use AI and other machine learning technology as part of their hiring process to perform an annual audit of their recruitment technology. These audits must be performed by a third party and check for instances of bias—intentional or otherwise—built into these systems.
Failure to comply with the new law, which is mandatory for any company operating and hiring in New York City, could result in fines starting at $500 with a maximum penalty of $1,500 per instance.
You may be thinking, my company doesn’t have offices in New York City, and we don’t use AI, so these arcane laws don’t apply to me. But you would be wrong. Regardless of office locations, the rise of remote work increases the possibility of candidates in New York City applying for roles in non-local organizations, and a law like it could be coming to a city near you.
The New Jersey Assembly is considering a limit on use of AI tools in hiring unless employers can prove they conducted a bias audit. Maryland and Illinois have proposed laws that prohibit use of facial recognition and video analysis tools in job interviews without consent of the candidates. Meanwhile, the California Fair Employment...
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