Automated Employment Decision Tools (AEDT) Law Pending

New York City Local Law 144 of 2021 is the first U.S. law specifically regulating automated employment decision tools (AEDTs). The law prohibits employers and employment agencies from using an AEDT unless: (1) the tool has been subject to an independent bias audit conducted no more than one year prior, and (2) a summary of the audit results — including the tool's impact on candidates across race/ethnicity and sex categories — has been publicly posted on the employer's website. Employers must also notify candidates at least 10 business days before using an AEDT, and inform them of the job qualifications and characteristics the tool will evaluate. Enforcement by the NYC Department of Consumer and Worker Protection (DCWP) began July 5, 2023, with penalties of up to $1,500 per violation.