NYC Delays Enforcement of Its Law Regulating the Use of Automated Employment Screening Tools

The New York City Department of Consumer and Worker Protection (DCWP) recently announced that it will postpone enforcement of its new law (Local Law 144) intended to regulate the use of automated employment decision tools until April 15, 2023. Local Law 144 would require employers to conduct bias audits on automated employment decision tools, including those that utilize artificial intelligence and similar technologies, and would require employers to provide certain notices about such tools to employees or job candidates who reside in the city.

The DCWP cited a high volume of stakeholder comments as its rationale for delaying enforcement of Local Law 144, which was previously supposed to take effect Jan. 1, 2023. The department held a public hearing on the law in November 2022 but said it would schedule a second public hearing at a time to be determined.

Local Law 144 would require employers to conduct bias audits on automated employment decision tools, including those that use artificial intelligence and similar technologies, and would require employers to provide certain notices about such tools to employees or job candidates who reside in New York City.

More information about Local Law 144 can be found here.

Agencies may also wish to review laws in other states where they operate, and in particular, Illinois and Maryland, as additional or different measures may be required to remain compliant with other applicable labor laws. The DC Attorney General also introduced a bill in 2021 that addresses discrimination in automated decision-making tools generally.  Similar legislation is likely to trend across other states, as this technology continues to infiltrate hiring practices and other areas of business.  At the federal level, the U.S. Equal Employment Opportunity Commission (EEOC) announced an initiative in October 2021 to evaluate the use of artificial intelligence in hiring and other employment decisions. The outcome of that evaluation is still TBD.

Official FAQ guidance on implementation of Local Law 144 can be found here.

Have questions about 2021 Local Law 44? Please contact Amanda Anderson, 4A’s Government Relations Director.