New York City Local Law 144 of 2021 — codified at NYC Admin. Code § 20-870 et seq. and operationalized by DCWP’s 6 RCNY § 5-300 — governs the use of "automated employment decision tools" (AEDTs) by employers and employment agencies hiring for positions in NYC. Enforcement began 5 July 2023.
What is an AEDT under Local Law 144?
A computational process derived from machine learning, statistical modeling, data analytics, or AI that issues simplified output — including a score, classification, or recommendation — that is used to substantially assist or replace discretionary decision making for employment decisions affecting NYC residents. DCWP’s Final Rule (6 RCNY § 5-300) defines "substantially assist or replace" narrowly: only when the AEDT output is the only criterion, weighted more than any other criterion, or used to overrule conclusions from other criteria.
What does an independent bias audit need to include?
Calculation of selection rate and impact ratio for each category required by EEOC’s Uniform Guidelines on Employee Selection Procedures (sex, race/ethnicity, and intersectional categories). The audit must be performed by an independent auditor — a person or group not involved in using, developing, or distributing the AEDT and with no employment or financial relationship with the employer or AEDT vendor that could influence judgment. Audit results must be no more than one year old.
What must be made public?
A summary of the most recent bias audit results must be posted on the employment section of the employer’s or agency’s website before the AEDT is used. The summary must include the date of the audit, source and explanation of input data, number of applicants in each category, and selection rates and impact ratios for each. The distribution date of the AEDT must also be posted.
What candidate notice is required?
At least 10 business days before using an AEDT, the employer must notify candidates and employees who reside in NYC: that an AEDT will be used, the job qualifications and characteristics it will assess, and — on request — the data type collected, the source, and the data-retention policy. Candidates must be allowed to request an alternative selection process or accommodation.
What are the penalties?
Civil penalties range from $500 for a first violation up to $1,500 for each subsequent violation. Each day a non-compliant AEDT is used is a separate violation, and failing to provide the required notice is a separate violation from failing to conduct the audit. Enforcement is by the NYC Department of Consumer and Worker Protection (DCWP).