New York City Updates Automated Employment Decision Law Rules and Effective Date
April 7th, 2023 | Chris Christian, Director of Compliance
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 new legislation regarding automated employment decision tools (“AEDT”). Enforcement of the law has been extended to July 5, 2023, to provide employers and others impacted with some additional time to come into compliance.
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 automated employment decision tools used for hiring or promotion purposes within the city limits. More information around the law can be found in the Sterling Compliance Update, and full text of the new ordinance can be found HERE. 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.
The Final Rules
The DCWP has made some significant changes to the final rules, including the expounding on the definition of machine-learning, statistical modeling, data analytics, or artificial intelligence, and clarifying when bias audits are needed. Employers and others impacted by the law should consider whether the tools they use are considered an AEDT under the law, and steps needed for compliance. The Adopted Final Rule can be found HERE.
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.