New York City Automated Employment Decision Tools FAQs
August 17th, 2023 | Chris Christian, Director of Compliance
On June 29th, 2023, the New York City Department of Consumer and Worker Protection (DCWP) published a Frequently Asked Questions (FAQs) related to Local Law 144 of 2021 which regulates employer’s use of automated employment decisions tools (AEDT). The FAQs provide general information and guidance for employers.
On December 11, 2021, New York City enacted a new law to amend the administrative code of New York City to regulate employer’s use of AEDTs used for hiring or promotion purposes within the city limits. More information around the law can be found in Sterling’s Compliance Update. Local Law 144 of 2021 took effect on January 1, 2023, but concerns around the proposed rules were raised by employers and other stakeholders resulting in extended rule review and public comment.
On April 6, 2023, the New York City Department of Consumer Affairs and Worker Protection (DCWP) published the long-awaited Notice of Adoption of Final Rules related to Local Law 144. Enforcement of the law was extended to July 5, 2023, to provide employers and others impacted with some additional time to come into compliance.
The FAQ covers the following topics related to the law:
- Overview of the Law
- General Bias Audit Requirements
- Data Requirements
- Independent Auditors
- Responsibility for Bias Audits
- Notice Requirements
Each section of the FAQ provides, among other things, general information about the law, definition clarifications, examples of scope, and applicability of the law. Employers are encouraged to review the FAQs and consult with their legal counsel on potential impacts Local Law 144 may have on their background screening policies and practices.
Sterling is not a law firm. This publication is for informational purposes only and nothing contained in it should be construed as legal advice. We expressly disclaim any warranty or responsibility for damages arising out this information. We encourage you to consult with legal counsel regarding your specific needs. We do not undertake any duty to update previously posted materials.