NYC Local Law 144 (Automated Employment Decision Tools)

Summary

NYC Local Law 144 prohibits employers and employment agencies in New York City from using an Automated Employment Decision Tool (AEDT) to substantially assist or replace discretionary decision-making for employment in NYC unless the tool has been subject to an independent bias audit within the past year, the audit summary is publicly posted, and candidates and employees have received required notices. The Department of Consumer and Worker Protection (DCWP) enforces the law. Civil penalties are $500 for the first violation and each violation occurring on the same day as a first violation, and $500 to $1,500 for each subsequent violation. Each day a violation continues constitutes a separate violation. Key requirements: (1) annual independent bias audit covering selection rates and impact ratios across protected categories; (2) public posting of audit summary on the employer's website; (3) at least 10 business days advance notice to candidates and employees prior to AEDT use, including instructions for requesting alternative selection processes.