The New York City Department of Consumer and Worker Protection (“DCWP”) recently issued a Notice of Adoption of Final Rule (“Final Rule”) relating to the implementation of New York City’s law regulating the use of automated employment decision tools (“AEDT”) by NYC employers and employment agencies.
NYC’s Local Law 144 now takes effect on July 5, 2023. As discussed in our prior post, Local Law 144 prohibits employers and employment agencies from using certain Artificial Intelligence (“AI”) tools in the hiring or promotion process unless the tool has been subject to a bias audit within one year prior to its use, the results of the audit are publicly available, and notice requirements to employees or job candidates are satisfied.
The issuance of DCWP’s Final Rule follows the prior release of two sets of proposed rules in September 2022 and December 2022. The Final Rule’s most significant updates from the December 2022 proposal include an expansion of the definition of AEDTs and modifications to the requirements for bias audits. Key provisions of the Final Rule are summarized below.