New York City Local Law 144 — Automated Employment Decision Tools: AI Compliance Requirements
NYC Local Law 144 (Int. 1894-A) requires any employer or employment agency in New York City that uses an automated employment decision tool (AEDT) in hiring or promotion decisions to conduct annual independent bias audits, publish the results, and notify candidates before use. An AEDT is any computational process that screens or ranks candidates. Applies to NYC-based roles regardless of where the company is headquartered.
Key Facts
January 1, 2023
July 5, 2023
$500 per violation; $1,500 per day for continuing violations (enforced by NYC Dept. of Consumer and Worker Protection)
What Your Business Must Do
4 compliance requirements identified. Critical requirements carry the highest risk of enforcement action.
Annual Independent Bias Audit
CriticalConduct an annual bias audit of each AEDT by an independent third party. The audit must assess disparate impact on candidates by sex, race/ethnicity, and intersectional categories. Audits must be completed within one year before use.
Publish Bias Audit Results
CriticalPost the bias audit summary on your public website, including the date of the audit, the distribution date of the tool, and the scoring rate for each EEO category. Results must remain online for at least six months.
Candidate Notification
High PriorityNotify all candidates and employees that an AEDT will be used to evaluate them, at least 10 business days before use. Include information on what job qualifications the tool screens for and where to request an alternative process.
Alternative Selection Process
High PriorityAccommodate candidates or employees who request an alternative selection process or accommodation instead of AEDT evaluation.
Frequently Asked Questions
Does New York City Local Law 144 — Automated Employment Decision Tools apply to my business?
NYC Local Law 144 (Int. 1894-A) requires any employer or employment agency in New York City that uses an automated employment decision tool (AEDT) in hiring or promotion decisions to conduct annual independent bias audits, publish the results, and no. Use ComplianceIQ's free scanner to get a personalized assessment in under 5 minutes.
What is the penalty for non-compliance?
The maximum penalty under New York City Local Law 144 — Automated Employment Decision Tools is: $500 per violation; $1,500 per day for continuing violations (enforced by NYC Dept. of Consumer and Worker Protection). Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.
How do I comply with New York City Local Law 144 — Automated Employment Decision Tools?
The 4 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. ComplianceIQ generates all required documents automatically.
Official Source
https://www.nyc.gov/site/dca/about/automated-employment-decision-tools.pageDon't leave compliance to chance
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