On April 6, 2023, New York City’s Department of Consumer and Worker Protection (“DCWP”) issued final rules governing Local Law 144 of 2021. That law prohibits employers in New York City from using automated employment decision tools (“AEDTs”) to screen candidates for hiring or promotion without satisfying certain requirements. Among other things, the employer must obtain an independent bias audit of the AEDT and notify affected applicants and employees of its use. The final rules clarify: (1) the definition of AEDTs; (2) the requirements of a bias audit; (3) the data requirements for the bias audit; and (4) the information employers must publish on their websites about the bias audit. The final rules also address some questions that remained from the earlier versions.
Which Tools Qualify as an AEDT
The law defines an AEDT to be a computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output, including a score, classification, or recommendation, and is used to substantially assist or replace discretionary decision-making for employment decisions impacting natural persons. The law expressly excludes tools that do not automate, support, substantially assist or replace discretionary decision-making processes and that do not materially impact natural persons (e.g., junk email filters, firewalls, antivirus software, calculators, spreadsheets, databases, data sets, and other compilations of...
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