New York City Postpones Enforcement of Law Regulating AI Employment Tools | Husch Blackwell LLP

New York City employers who use automated decision-making tools (“AEDTs”) are now available until April 15, 2023, to prepare for compliance with New York City Law 144 governing the use of such devices. This law will come into force on January 1, 2023.

In the following post, we provide a brief overview of the law and its current law-making process.

Local Rule 144 applies to employers and employment agencies in New York City that use AEDTs to screen candidates for jobs or employees for outreach opportunities in the city. AEDT is defined as “any computational process that results from machine learning, statistical analysis, data analysis, or artificial intelligence that produces simple results, including grading scores, or instructions that are used to significantly help or replace decisions. “By discretion. Decide on work that affects the natural person.”

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The law makes it illegal for employers or employment agencies to use the AEDT to screen candidates for jobs or employees for promotion unless:

  • AEDT is the subject of a biased audit conducted no more than one year prior to the use of such equipment. And
  • The employer or employment agency publishes a summary of the results of the most recent biased audit results and the distribution date of the AEDT in which such an audit is conducted.

Biased audit is an independent evaluation by an independent auditor that incorporates AEDT testing to assess its unequal impact on individuals of component 1 required to be reported by employers in their EEO-1 report. Defined by Title VII of Civil Rights. Act of 1964, as amended (i.e., the composition of the employer’s workforce by race / ethnicity, gender, and type of work).

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In addition, the employer must notify the employee / candidate residing in New York City at least 10 business days prior to using AEDT. This includes the fact that the AEDT will be used and the qualifications and characteristics that the AEDT will use in the evaluation. Unless otherwise disclosed on the employer’s or agency’s website, the candidate or employee may request additional information regarding the organization’s data management practices. The insured employer must also allow the applicant to request a replacement selection process or accommodation.

Violations are punishable by up to $ 500 for the first violation, and each additional violation occurs on the same day as the first violation, and between $ 500 and $ 1,500 for each violation. Each sequence. Every day of using AEDT is considered a separate violation. Failure to provide the required notice to the candidate or employee is also a separate violation.

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The law was originally scheduled to take effect Jan. 1, 2023, and is subject to the New York City Department of Consumer and Workers’ Protection (“DWCP”). The DWCP recently announced that implementation of Rule 144 would be postponed to allow for a second public hearing after the DWCP released its proposed rules in September and held a public hearing on 4th November 2022. In response to its proposed law publication, the DWCP received “high amounts of public opinion” regarding a number of key issues, including what constitutes the AEDT, uncertainty regarding biased audits, and the scope of the stay. Considered by law.

The extension of the implementation date allows the DWCP to specify the rules that are being drafted to provide guidance on the requirements of Basic Law 144. A date for the second public hearing has not been announced.

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