New York, NY: New Guidance for AI Regulations

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APPLIES TO

All Employers with NYC Employees

EFFECTIVE

June 29, 2023

  

QUESTIONS?

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(888) 378-2456
Quick Look

  • New York City employers using automated employment decision tools (AEDTs) in hiring and promotion decisions must adhere to specific requirements and limitations.
  • The New York City Department of Consumer and Worker Protection released a set of FAQs explaining how the law applies.

Discussion

The New York City Department of Consumer and Worker Protection (DCWP) released a set of FAQs clarifying NYC Local Law 144. The law regulates the use of automated employment decision tools (AEDTs) in hiring and promotion decisions. The law went into effect on January 1, 2023 with enforcement beginning on July 5, 2023. During the draft, review, and revision process of the regulations implementing the law, the DCWP held a series of roundtables to address the concerns and questions about the law. The FAQs are a direct result of the roundtables. The FAQs’ key clarifications are:

Definition of “In the City.” The law applies to those who use AEDTs “in the city.” Employers are covered if: 1) the job location is an office in NYC, even if part-time; 2) the job is fully remote, but the location associated with the job is an office in NYC; or 3) the location of the employment agency using the AEDT is NYC or, if outside NYC, the first or second points on this list are true. For employers, this means the job must be tied to an NYC location. However, for employment agencies, it appears that the law would apply to all jobs if the employment agency is located in NYC.

Resume Banks or Inviting Applications. Using an AEDT to scan a resume bank, conduct outreach to potential candidates, or inviting applications does not trigger applicability of the law. The requirements only apply when assessing particular candidates for a specific position for hire or promotion.

Bias Audits. Bias audit results do not require any specific actions be taken by the employer subsequent to the results. Further, a bias audit does not need to be specific to a job or class but can span multiple types of positions.

Selective Improvement of Bias Audit Result. There was some concern that employers might exclude data from certain time periods or geographies to improve the results of a bias audit. The FAQs make clear that if a data set is limited in any way, then the audit must provide an explanation as to why it was limited.

Action Items

  1. Review the FAQs.
  2. Determine whether AEDTs are used in the hiring or promotion process.
  3. Train appropriate personnel on the requirements.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase