At first glance, a first-in-the-country law recently enacted by New York City may seem fairly straightforward. But its brevity belies its potential impact on employers that recruit or promote within New York City. The law requires employers and employment agencies that use “automated employment decision tools” within the City to (i) conduct independent audits of such tools for bias and (ii) provide disclosures to candidates and employees at least 10 business days prior to using automated employment decision tools. Violations may be subject to civil fines of up to $1,500 for each violation. The law takes effect on January 1, 2023.
The law, codified at N.Y.C. Admin. Code § 20-870 et seq., prohibits employers and employment agencies from using “automated employment decision tools” in New York City to screen candidates for employment or assess employees for promotions unless such tools have been subject to independent bias audits, the results of which must be summarized and posted publicly on the employers’ or employment agencies’ websites. The law also requires employers and employment agencies to provide candidates and employees with disclosures regarding the use of automated employment decision tools.
We explore the key concepts of the law in greater detail below.
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