NY LOCALLAW144: Automated Employment Decision Tools (AEDT) Law

In one paragraph

New York City's Local Law 144 of 2021 bars employers and employment agencies from using an automated employment decision tool (AEDT) to screen candidates or employees for hiring or promotion in the city unless an independent auditor did a bias audit of it no more than one year before use and a summary of the results and the tool's distribution date are on their website. City residents must get notice at least 10 business days before use. Fines: up to $500 for a first violation, $500 to $1,500 for each subsequent one. Became law without the Mayor's signature in December 2021; effective January 1, 2023; the Department of Consumer and Worker Protection began enforcing it July 5, 2023.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

Employers and employment agencies that use AEDTs to screen candidates for jobs or promotions in NYC need an independent bias audit in the prior year, a posted results summary, and notice to NYC residents 10 business days before use. Fines: up to $500 for a first violation, then $500-$1,500 each.

Key provisions

1. 1Admin. Code § 20-870: an AEDT is a computational process derived from machine learning, statistical modeling, data analytics or AI that issues simplified output (including a score, classification or recommendation) used to substantially assist or replace discretionary decision making in screening candidates for employment or employees for promotion within the city
2. 2No use unless the tool had a bias audit (an impartial evaluation by an independent auditor testing disparate impact on the EEO-1 Component 1 categories) no more than one year before use, with a summary of the latest audit's results and the tool's distribution date public on the employer's or agency's website (§ 20-871(a))
3. 3City-resident candidates and employees must be told at least 10 business days before use that an AEDT will be used and which job qualifications and characteristics it assesses, and be allowed to request an alternative selection process or accommodation; data type, source and retention policy must be posted or given within 30 days of a written request (§ 20-871(b)); the notice must say how to request an alternative, but no alternative process has to be provided (6 RCNY § 5-304(a))
4. 4Civil penalties (§ 20-872): not more than $500 for a first violation and each additional violation on the same day, and $500 to $1,500 for each subsequent violation; each day of unlawful use and each missed notice is a separate violation
5. 5Penalty proceedings go to an OATH tribunal or another designated city tribunal (§ 20-872(d)); the Corporation Counsel may sue on behalf of the Department of Consumer and Worker Protection (DCWP) to correct violations; the law does not limit candidates' or employees' right to sue or the Commission on Human Rights' enforcement (§§ 20-873, 20-874)
6. 6DCWP rule (6 RCNY §§ 5-300, 5-301): 'substantially assist or replace discretionary decision making' means relying solely on the tool's simplified output, weighting it more than any other criterion, or using it to overrule conclusions from other factors, including human decision-making; audits must calculate selection or scoring rates and impact ratios by sex, race/ethnicity and intersectional categories
7. 7DCWP rule (§§ 5-300, 5-303, 5-304): an auditor is not independent if it was involved in using, developing or distributing the tool, or during the audit works for, or has a direct or material indirect financial interest in, the employer, agency or vendor; results must stay posted at least 6 months after last use; notice may go in a job posting, by mail or email, on the careers webpage (candidates) or in a written policy (employees)
8. 8Passed by the Council November 10, 2021 and returned unsigned by the Mayor (Local Law 144 of 2021); effective January 1, 2023; DCWP began enforcing the law and its rule July 5, 2023

Latest legislative action

Dec 13, 2021. Returned unsigned by the Mayor; became Local Law 144 of 2021 without signature (Legistar enactment date December 11, 2021)