Written By Digital Content Editor Thomas Ahearn

On December 12, 2022, the New York City Department of Consumer and Worker Protection (DCWP) announced it would postpone enforcement of Local Law 144 of 2021 which would regulate the use of artificial intelligence (AI) screening tools that was originally scheduled to take effect on January 1, 2023, until April 15, 2023.

The DCWP “is working on rules” for the law that would regulate the use of “automated employment decision tools.” The DCWP held a public hearing about the law in November 2022 and is “planning a second public hearing” due to the high volume of public comments. People can check the New Laws page for updates.

Local Law 144 of 2021 will regulate “automated employment decision tools” that include “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation” used for making employment decisions.

Under the law, “automated employment decision tools” must be the subject of a “bias audit” conducted no more than one year prior to the use of the tools and a summary of the results of the most recent bias audit of such tools must be made publicly available on the website of the employer or employment agency prior to usage.

The law also requires that candidates or employees that reside in New York City be notified about the use of “automated employment decision tools” in the assessment or evaluation for hire or promotion, and be notified about the job qualifications and characteristics that will be used by the “automated employment decision tools.”

Violations of the provisions of the law will be subject to a civil penalty. Violators will be liable for a civil penalty of not more than $500 for a first violation and each additional violation occurring on the same day as the first violation, and not less than $500 nor more than $1,500 for each subsequent violation.

Employment Screening Resources (ESR) is a service offering of ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar offers background checks that comply with federal, state, and local laws. For more information, contact ClearStar.

NOTE: Employment Screening Resources (ESR) – a service offering of ClearStar – does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

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