NYC AEDT law enforcement deadline extended, concerns remain

Early this month, the City of New York announced the final rules for Local Law 144, concerning employers’ use of “automated employment decision tools” (AEDT) and, once again, pushed the enforcement date.

The law requires that any companies using automated recruiting tools are subject to annual bias audits and also must disclose to employees and candidates which tools the company uses. Enforcement of the law begins July 5, 2023 and fines range from $500 to $1,500 per violation per day, according to SHRM.

Last chance. “The final rules include a number of changes to earlier versions, including expanding the scope of ‘machine learning, statistical modeling, data analytics, or artificial intelligence,’ modifying bias audit standards, and clarifying information that must be disclosed,” Simone Francis, an attorney with Ogletree Deakins, told SHRM.

Lisa Lupion, partner, and Brianna Messina, associate, from the law firm Orrick, Herrington & Sutcliffe wrote that the law applies to companies that use AEDTs to “substantially assist or replace discretionary decision making,” meaning: They rely solely on a score or ranking, or the score or ranking is weighted more than a human decision.

Employers need to identify any tools fitting this description as AEDTs, submit them for an independent bias audit, and then make a summary of that audit publicly available, Lupion and Messina wrote. The law is unclear as to what type of professional may conduct the audit, only specifying that they must be impartial, independent, and not involved in the creation or distribution of the AEDT.—AK