Law and Policies

Key learnings from New York City’s Local Law 144

What is this new law?

New York City’s Local Law 144, passed in December 2021, aims to combat the issue of AI bias in employment decision-making. The law requires employers and employment agencies in New York City to conduct bias audits of their “automated employment decision tools” (AEDTs) used for hiring or promoting candidates who reside in the city.

How does a Bias audit look like?

A bias audit is a statistical evaluation of your AEDT. The audits result must be made public and employers must inform candidates or employees than an AEDT will be used at least 10 days prior to the tool’s implementation.

When will the law come into effect?

The law becomes effective on July 5th , 2023. Audits of AEDT’s are valid for a year.

Which tools are covered?

The definition of AEDTs covers any computational system (e.g. AI, statistics etc.) that outputs a simplified score that substantially assists or replaces discretionary decision making.

When does it apply?

If an AEDT is used for screening and hiring candidates or promoting existing employees residing in New York City, the AEDT must be audited.

Are you looking for an AI audit before the deadline?

Feel free to reach out to us – together we can ensure your AI is compliant.