Over the past decade, many employers have adopted Artificial Intelligence-driven tools to automate various aspects of the workplace, including the recruiting and hiring process. These tools have come under scrutiny by federal, state, and local governments based on research that has suggested the possibility of bias or discrimination arising from the widespread use of such tools. Due to a new law in New York City, effective January 1, 2023, New York City employers will be prohibited from using automated employment decision tools to screen applicants and employees, unless the tool has been subject to a biased audit and the employer satisfies a series of potentially burdensome notice requirements.
Under the law, it is unlawful for an employer or an employment agency to use an automated employment decision tool to screen a candidate or employee for an employment decision unless: (i) the tool has been the subject of a biased audit conducted no more than one year prior to the use of such tool; and (ii) a summary of the results of the most recent bias audit (as well as the distribution date of the tool to which such audit applies) has been made publicly available on the employer’s website prior to the use of such tool. The audit must be conducted by an independent auditor and assess whether the tool has a disparate impact on race, ethnicity, and gender.
Automated employment decision tools include “any computational process, derived from machine learning, statistical modeling,...
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