NYC Bias Audit Law (Local Law 144)
AI Bias Audits.
- From the 5th of July, 2023 the NYC Bias Audit Law (Local Law 144) requires independent audits on the use of Automated Employment Decision Tools (AEDTs)*.
- This law impacts both external hires plus internal promotions that use AEDTs.
- Both employers & employment agencies that use an AEDT “in the city” are impacted.
- This means:
- The job location is an office in NYC, at least part time, OR
- The job is fully remote but the location associated with it is an office in NYC, OR
- The location of the employment agency using the AEDT is NYC or, if the location of the employment agency is outside NYC, one of the bullets above is true.
- If the Law applies:
- A bias audit of the AEDT must be completed before its use AND
- Job candidates who are New York City residents must receive notice that the employer or employment agency uses an AEDT.
Automated Employment Decision Tools
*An Automated Employment Decision Tools (AEDTs)* is a computer-based tool that:
- Uses machine learning, statistical modeling, data analytics, or artificial intelligence AND
- Helps employers and employment agencies make employment decisions AND
- Substantially assists or replaces discretionary decision-making.
- AEDTs often produce a simplified output, such as a score, classification, or recommendation, that employers can use to screen, evaluate, or select candidates for employment or promotion. Examples could include, but are not limited to:
- Resume screeners, Video interviews or Psychometric assessments.
- An audit report needs to be publicly available on an organisation’s website and completed annually. The audit is still required no matter where the AEDT is used in the assessment process, i.e. as an early screening tool or informing the final offer or employment / promotion.
- Candidates and employees must be notified at least 10 days in advance of using an AEDT(s) along with allowing them to request an alternative approach or accommodation.
- Penalties for non-compliance are $USD 500 for a first violation and each additional violation occurring on the same day. Plus between USD$500 – $1,500 for each subsequent violation.
- Please see here for additional guidance on these laws and audit requirements.
- People Excellence delivers independent and objective bias audits in line with the New York City Council Law, providing you with the independent expertise to ensure compliance.
- Our audits produce the summary of results table required in a convenient HTML format you can post directly on your company website.
- Our expertise in psychometrics, assessment and machine learning allows us to provide you additional post audit support, should this be of use.