NYC Local Law 144 (Automated Employment Decision Tools)
In effect since
Overview
Requires employers using automated employment decision tools in NYC to conduct annual independent bias audits and notify candidates of AI use.
This is an AI-specific state law.
Who this applies to
This regulation applies to companies that use or deploy AI tools and systems built by other vendors. If your company uses AI-powered products in the areas listed below, this regulation may apply to you.
AI categories covered
- Employment and hiring
Specific AI use cases:
- Resume screening and ranking
- Candidate assessment and scoring
What this requires you to do
Bias audit required
Conduct an independent bias audit. An outside auditor must evaluate your AI system for discriminatory outcomes.
Transparency notice required
Provide transparency notices. Inform affected individuals that AI is being used and how it influences decisions.
Record-keeping required
Maintain records. Keep documentation of your AI systems, decisions made, and compliance activities.
Enforcement and penalties
Fines of $500 for first violation, $500-$1,500 per subsequent violation per day. Independent bias audit costs $20,000-$75,000.
Source
Read the full text
https://www.nyc.gov/site/dca/about/automated-employment-decision-tools.page
Always verify current language and amendments at the official source.
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