NYC Local Law 144 (AEDT)
New York City Local Law 144 of 2021 regulates the use of Automated Employment Decision Tools (AEDTs) by employers and employment agencies for hiring or promotion decisions affecting NYC residents. Requires an annual independent bias audit, public disclosure of audit results, candidate notice at least ten business days before use, and recordkeeping. Enforcement began July 5, 2023.
Regulator: NYC Department of Consumer and Worker Protection
Official sourceaudit
No employer or employment agency shall use an automated employment decision tool to screen a candidate or employee for an employment decision unless a bias audit has been conducted of such tool no more than one year prior to its use, by an independent auditor.
A bias audit shall be conducted by an independent auditor and shall calculate, at minimum, the selection rate and impact ratio for each category required to be reported under EEOC Component 1 reporting (sex, race/ethnicity, and intersectional categories).
documentation
Employers and employment agencies shall retain records of bias audit results and required notices in accordance with rules promulgated by the Department of Consumer and Worker Protection.
measurement
The bias audit shall report the impact ratio for each protected category and intersectional combination and explain any category for which historical data was insufficient. Thresholds and minimum sample sizes are defined by the rule.
The bias audit shall include intersectional categories combining sex with race/ethnicity. Where historical data is unavailable, the auditor shall use test data and disclose this in the audit summary.
policy
The notice provided to candidates shall allow the candidate to request an alternative selection process or accommodation, where appropriate.
transparency
An employer or employment agency that uses an AEDT to assess a candidate who has applied for a position for an employment decision shall, no less than ten business days before such use, notify each candidate residing in the city that an automated employment decision tool will be used and disclose the job qualifications and characteristics it will assess.
Before using an AEDT, the employer or employment agency shall make publicly available on its website a summary of the most recent bias audit results and the distribution date of the AEDT to which such audit applies.