Compliance
The NYC Bias Audit Law (Local Law 144) mandates employers and employment agencies using Automated Employment Decision Tools (AEDTs) within New York City undergo an annual, third-party bias audit. These audits evaluate AEDTs for potential bias across protected characteristics such as race/ethnicity, and sex. The law was enacted in 2021, went into effect on January 1, 2023, and began enforcement on July 5, 2023. Non-compliance can result in civil penalties of up to $1,500 per violation per day. Covered organizations must also publish a summary of audit results and notify candidates at least 10 business days before using an AEDT in any hiring process.
Warden AI is purpose-built to help employers, staffing firms, and HR tech vendors achieve and maintain NYC Local Law 144 compliance. Our independent AI bias auditing platform conducts the statistical analysis required by the law — including selection rate calculations by race/ethnicity and sex — and delivers a compliant audit report ready for public posting. Audits follow a structured timeline so you're never caught off-guard by enforcement deadlines. Whether you're completing your first audit or managing annual renewals, Warden AI provides a clear process from data submission to final report delivery. Book a demo to get started.
Preparation
Local Law 144 is already in effect, setting a precedent for other cities and states. Warden AI ensures your HR tech tools are continuously monitored and audited, with certification to demonstrate compliance.
Evaluate your AEDTs for disparate impact based on protected categories.
Deliver transparent audit results that meet disclosure requirements.
Avoid fines and demonstrate commitment to ethical hiring practices.
Frequently Asked Questions
Any employer or employment agency that uses an Automated Employment Decision Tool (AEDT) to screen candidates or employees for NYC-based roles must comply — regardless of company size, industry, or where the business is headquartered. The legal obligation sits with the employer, not the software vendor, so a vendor's assurance alone does not satisfy the law.
An Automated Employment Decision Tool (AEDT) is any software, algorithm, or AI system used to substantially assist or automate employment decisions such as screening, scoring, or ranking candidates for hiring or promotion. These tools may be standalone resume screeners or features embedded inside a larger HR information system.
A bias audit is an independent evaluation of an AEDT by a third party to assess whether it produces discriminatory outcomes based on protected characteristics such as race, ethnicity, or sex. Under NYC Local Law 144 it must be performed by an impartial auditor like Warden AI before the tool is used, and it forms the evidentiary backbone of compliance.
NYC Local Law 144 requires a bias audit conducted by an independent third party within the prior year. The audit must be completed before the AEDT is used and renewed annually, so compliance is an ongoing cycle rather than a one-time exercise.
The audit analyzes selection-rate and scoring-rate disparities across race/ethnicity and sex, including intersectional categories, using a statistically meaningful sample. For full details on third-party bias audit requirements and methodology, see our Assurance Measures page.
Covered employers must post a public summary of the most recent bias audit on the careers or jobs section of their website, showing the selection rates and impact ratios for each category, the data used, and the audit's distribution date. Warden AI delivers a report formatted for public posting, and results can be featured through the Warden Assured Directory.
Yes. The law follows the job, not the employer's location. If an AEDT is used to evaluate candidates for a role tied to New York City — including remote positions filled by NYC residents or jobs associated with an NYC office — you must comply, regardless of where your headquarters sit.
The NYC Department of Consumer and Worker Protection enforces NYC Local Law 144 with civil penalties of up to $500 for a first violation and between $500 and $1,500 for each subsequent violation. Every day an AEDT is used without a valid bias audit counts as a separate violation, and each failure to give candidates proper notice is a separate violation too — so penalties accumulate quickly.
Vendors are not directly regulated under NYC Local Law 144 today, but their enterprise clients are — making audit-ready tools essential for sales and procurement conversations. Many vendors complete an independent bias audit with Warden AI so customers can adopt their AEDT without slowing down compliance.
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