NYC Local Law 144 Bias Audit Checker + Cost Estimator

NYC Local Law 144 of 2021, codified at NYC Administrative Code §§ 20-870 to 20-874 and implemented by 6 RCNY § 5-300, regulates the use of Automated Employment Decision Tools (AEDTs) by employers and employment agencies for jobs located in New York City or for candidates who reside in NYC. Enforcement began 5 July 2023 after the Department of Consumer and Worker Protection (DCWP) finalized its rules on 5 April 2023.

Under NYC Administrative Code § 20-870, an AEDT is any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues simplified output — including a score, classification, or recommendation — used to substantially assist or replace discretionary decision-making for employment decisions. 6 RCNY § 5-300 clarifies "substantially assist or replace" to mean relying solely on the AEDT output, weighting it more than any other criterion, or using it to overrule other conclusions.

Under 6 RCNY § 5-301(a), an independent auditor must conduct a bias audit of the AEDT within one year prior to any use of the AEDT to assess or evaluate a candidate or employee. The bias audit must be repeated annually thereafter. The audit calculates selection rate and impact ratio disaggregated by sex category, race/ethnicity category, and intersectional sex/race categories, using either historical data of the employer or, if none, testing data from a comparable AEDT.

Independent auditor fees typically range from $5,000 for a small single-tool audit up to $150,000+ for enterprise multi-tool multi-jurisdiction engagements. Median cost for a mid-market employer is $15,000 to $40,000 per year covering the auditor fee plus internal data preparation. Optional continuous-monitoring platforms (Holistic AI, Warden AI, Fairly AI) add $10,000 to $25,000 per year but are not required by the statute. The cost estimate on this page is derived from public auditor pricing pages and industry reporting; it is not a quote.

Under 6 RCNY § 5-300, an independent auditor must be a person or group that is not involved in using, developing, or distributing the AEDT and does not have an employment relationship with the AEDT vendor, the employer, or the employment agency. The independent auditor must not have direct financial interest, or a material indirect financial interest, in the employer, employment agency, or vendor of the AEDT. Using an internal team or the AEDT vendor itself will not satisfy the independence requirement.

Under 6 RCNY § 5-303, employers and employment agencies must provide notice to candidates or employees who reside in NYC at least 10 business days before use of the AEDT. The notice must state that an AEDT will be used, the job qualifications and characteristics the AEDT will use, and the data types collected and the source of the data. Instructions on requesting an alternative selection process or reasonable accommodation must also be provided.

Under NYC Administrative Code § 20-872, penalties are up to $500 for a first violation and up to $1,500 for each subsequent violation. Each day of use of an AEDT in violation of the law is a separate violation, and failure to provide the required notice is also a separate violation from any unlawful AEDT use. Enforcement is exclusive to the NYC Department of Consumer and Worker Protection.

Yes. Local Law 144 applies to AEDTs used to assess candidates who reside in NYC and to jobs that will be performed in NYC, including hybrid roles with any NYC on-site component. If a fully remote role is open to NYC candidates and NYC candidates apply, LL-144 obligations attach to the assessment of those candidates.

The New York State Office of the State Comptroller published a report in December 2025 on "Enforcement of Local Law 144" recommending stronger DCWP oversight, more frequent audit publication, and clearer notice requirements. The report is available at https://www.osc.ny.gov/state-agencies/audits/2025/12/02/enforcement-local-law-144-automated-employment-decision-tools. It does not change the statute itself but signals higher enforcement intensity ahead.

No. This is a preliminary self-service check based on the plain text of NYC Local Law 144, NYC Administrative Code §§ 20-870 to 20-874, and 6 RCNY § 5-300. It is not legal advice. The independent-auditor requirement is strict and enforcement-tested — confirm auditor independence and the exact scope of your annual audit with qualified NYC counsel before relying on the output.