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. Employers using AEDTs must enlist an independent auditor to conduct a bias audit using historical or test data and publish a report of adverse impact results and methodology for applicants when a hiring or promotion decision is made or assisted by algorithmically-driven mechanisms. Employers must also provide notice to applicants that includes a 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.
What should I be doing about this law?
There still remains some uncertainty surrounding whether an assessment is classified as an AEDT under the law. Various factors come into play, including the assessment's functionality and development process, the underlying methods used, and how and where an employer uses an assessment. There are steps your organization can take to determine if compliance with this law is necessary and, if so, how to achieve it.
1) Get the right people involved in the discussion including legal counsel, talent acquisition, decision makers, and experts in selection practices and adverse impact measurement, such as Industrial/Organizational (I/O) Psychologists.
2) Identify any assessments being used in selection processes for jobs located in or reporting to an office in NYC.
3) Evaluate internally or through an external auditor whether each assessment could be considered an AEDT under the law's definitions.
4) Identify an independent auditor to conduct bias audits of the AEDTs, the relevant data needed to conduct the bias audit, and documentation needed for required disclosures.
Why should I consider DCI as my independent auditor for this law?
Prior to conducting a bias audit, it's important to determine whether NYC Local Law 144 applies to your organization. DCI's I/O psychologists can help your organization determine the law's applicability to the employment assessments it uses, as well as help design the analysis to be used. On the surface, a bias audit may appear straightforward. However, there are intricate complexities and considerations involved in conducting high-stakes adverse impact analyses that are aligned with research-based best practices. These nuances are critical because NYC Local Law 144 mandates that organizations' bias audit results be made public. Once it has been determined that the law applies, DCI can serve as your independent auditor to ensure compliance with the law.
For over 20 years, DCI has been offering independent audit and expert review services, covering both traditional assessments and assessments powered by artificial intelligence and machine learning. Our team of experts brings in-depth knowledge of:
- The broader legal framework and the professional and legal standards governing the use of selection procedures,
- The development, implementation, and validation of selection systems and assessments,
- Nuanced statistical issues associated with conducting adverse impact analyses of employment decisions.
Most importantly, DCI brings extensive experience conducting high-stakes adverse impact analyses of assessment results across various proactive and legal scenarios. This unparalleled experience and expertise enable DCI to guide your organization towards compliance with NYC Local Law 144 while navigating the broader equal employment opportunity landscape.
