The Society for Human Resource Management (SHRM) is seeking further clarity to help employers comply with a new law in New York City regulating the use of automated employment decision tools.

SHRM commended the New York City Department of Consumer and Worker Protection for proposing rules to clarify the first-of-its-kind law going into effect Jan. 1, 2023, but would like to see further guidance, specifically around the exact definition of "automated employment decision tool" and the provisions related to conducting bias audits.

The New York City statute, passed in December 2021, requires that AI and algorithm-based technologies for recruiting, hiring or promotion be audited for bias before being used. Employers also must provide job candidates and employees that reside in New York City with notification about the tool's use and the job qualifications and characteristics that the technology will use to make its assessment or evaluation.

"SHRM agrees that clearly defined terms and clarity regarding the bias audit requirements, the notice requirements, and other obligations serve to promote compliance and reduce confusion about the nuances of this law," said Emily M. Dickens, SHRM chief of staff and head of government affairs, in written comments submitted to the department in October. "SHRM also commends the department for its focus on addressing ambiguities and providing specificity around the requirements and obligations of the law while also refraining from expanding the...

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