The law prohibits employers and employment agencies from using “automated employment decision tools” in New York City to screen candidates for employment or assess employees for promotions unless such tools have been subject to independent bias audits, the results of which must be summarized and posted publicly on the employers’ or employment agencies’ websites. The law also requires employers and employment agencies to provide candidates and employees with disclosures regarding the use of automated employment decision tools.
In January 2023, the New York City Bias Audit Law (Local Law 144) was enacted by the NYC Council in November 2021. Originally due to come into effect on January 1, 2023, the enforcement date for Local Law 144 was pushed back to April 15, 2023 due to the high volume of comments received during the public hearing on the Department of Consumer and Worker Protection’s (DCWP) proposed rules to clarify the requirements of the legislation. From April 15, 2023 onward, companies are prohibited from using automated tools to hire candidates or promote employees, unless the tools have been independently audited for bias.