NEW YORK CITY LOCAL LAW 144
NYC Local Law 144 governs the use of automated employment decision tools (AEDTs) used to make hiring and promotion decisions in NYC or for remote jobs that are associated with an office in NYC. What constitutes an AEDT is based on the specific definitions in the law, which consider factors related to the assessment design as well as how it is implemented by the specific employer.
Employers using AEDTs must enlist an independent auditor to conduct an annual bias audit using historical or test data and publicly publish a “bias audit” report that includes adverse impact results and a description of the data and methodology used for the required analyses. Employers must also provide notice to applicants in a clear and conspicuous manner on the employment section of their website at least ten business days before the use of an AEDT that includes disclosure about the use of any AEDTs in hiring and promotion, details of the qualifications and characteristics being evaluated, identification of the data being used and the data retention policy, and the process for requesting an alternative assessment.
Failure to comply with Local Law 144 can result in civil penalties of up to $500 for each violation, and fines accumulate daily for each instance of noncompliance.
There are steps your organization can take to determine if compliance with this law is necessary and, if so, how to meet the compliance requirements.
-
Involve legal counsel, talent acquisition decision makers, assessment designers/developers, and experts in selection practices and adverse impact measurement, such as I/O Psychologists, in the discussion.
-
Identify any assessments being used for jobs located in NYC or remote jobs associated with an office in NYC and evaluate whether these could be considered AEDTs under the law. This requires understanding the details of each assessment, as well as how it is used in decision-making.
-
Determine whether your AEDT vendor has conducted a bias audit that included your organization’s data. If so, you may be able to use your vendor's audit to meet compliance requirements.
-
Identify an independent auditor to conduct bias audits of the AEDTs, the data needed to conduct the bias audit, and documentation needed for required disclosures.
-
Publish the bias audit report and assessment information on the employment section of your organization’s website in a clear and conspicuous manner.
-
Provide candidate notices at least ten business days prior to the use of the AEDT.
-
Ensure ongoing compliance requirements are met including conducting and publishing annual bias audit results and maintaining the posted bias audit as required.
Contact our team
