Warden Watch

New York City: Automated Employment Decision Tools Law (Local Law 144 of 2021)

New York CityLegislationIn force

NYC Local Law 144 regulates the use of automated employment decision tools (AEDTs) in hiring and promotion decisions involving New York City candidates or employees. It requires employers and employment agencies to ensure that a covered AEDT has been independently audited for bias within the previous year, to publish a summary of the audit results, and to provide advance notice before the tool is used. The law is focused on automated tools that substantially assist or replace discretionary employment decision-making using machine learning, statistical modeling, data analytics, or artificial intelligence. It does not require vendors to conduct the audit themselves, although providers may need to support customers with data, documentation, and audit coordination. It does not apply to tools that do not materially impact natural persons, like junk email filters, or to the assessment of individuals who have not applied for a specific position.

Impact

What this means for HR and vendors

HR and recruitment teams

HR and recruitment teams must ensure that any AI-driven screening or ranking tool used for NYC residents has undergone an independent bias audit before deployment. Organizations should ensure they coordinate with legal teams and software vendors to secure historical data or test data for the required annual audit. This increases the importance of integrating a 10-business-day advance notice into the application workflow and establishing internal procedures to handle candidate requests for alternative selection processes or accommodations.

HR technology vendors

While the legal compliance burden falls entirely on deployers, HR technology providers will be heavily relied upon to facilitate compliance through data sharing and feature updates. Providers may need to supply historical usage data to independent auditors or provide test data if historical data is insufficient. They should ensure their products support the display of required pre-screening notices and allow candidates to submit accommodation requests, although they hold no direct liability for conducting the bias audit under the law.

Key obligations

What organizations need to do

Practical obligation briefings focused on what the requirement is, who it applies to, when it applies and what teams should consider doing.

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Employment-focused extraction

This may be part of wider regulation. The Warden Watch extracts and displays the parts relevant to employment, HR and recruitment decision-making.

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