New York City today begins enforcing Local Law 144 of 2021, one of the first laws anywhere to regulate the use of AI and automated tools in hiring and promotion decisions.
Key points
- Applies to employers and employment agencies using automated employment decision tools (AEDTs) to substantially assist decisions about NYC-based roles.
- An independent bias audit must be carried out within one year before a tool is used.
- A summary of the latest audit results must be published on the employer’s website.
- Candidates must be notified at least 10 business days before use, including the qualifications and characteristics assessed.
- Breaches attract civil penalties for each violation.
UK organisations recruiting for New York roles, and HR technology vendors selling there, need audit-ready evidence of fairness testing. The law is an early example of the transparency and bias-testing duties now appearing in the EU AI Act and wider AI governance frameworks.
Source: Automated Employment Decision Tools, Local Law 144 (NYC DCWP)
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