Get Compliant With the NYC AI Bias Law (Local Law 144) — Guaranteed
- Complete compliance solution within 2 weeks of receiving your data — get compliant as the law is already in effect
- Compliance with Local Law 144 guaranteed — if regulations change during the term of our audit, we will update at no charge
- Strong focus on compliance — we know the law and get your organization compliant as quickly and easily as possible with the objective letter of the law
- This lean process allows us to provide results substantially faster than other providers
Contact Us For a Free Consultation
We understand the sensitive nature of the requirements of Local Law 144. Publicly disclosing previously confidential hiring processes to public scrutiny presents a substantial challenge to HR and legal teams. We are happy to work collaboratively with internal legal teams or external retained council given the sensitive nature of HR compliance work
What does the NYC AI bias audit law require (and how do we help)?
Starting on July 5, 2023, Local Law 144 requires companies hiring employees in NYC to conduct independent bias audits of tools used to automate hiring or review/promotion processes. Given that the requirement applies to any company hiring NYC employees, this law casts a wide net for organizations that will need to be in compliance (including those with remote workers but no offices in NYC). The law requires that organizations using automated, algorithmic hiring tools must take the steps highlighted to the right.
Conduct a bias audit prior to July 5, 2023 or before using a new tool
The audit must calculate the “selection rate” for each of 7 protected categories defined by the EEOC. The audit must then report an “impact ratio” comparing each category to the category most selected.
Publish results on website
These results must be posted in the careers or jobs section of an employers webpage. We provide a custom landing page for each client containing audit results and certifying that we, an independent auditor, completed the work.
Employers must also provide notice to employees or candidates on the use of AEDT in advance of going through the employment funnel. We make specific suggestions on quickly getting into compliance with this requirement.
Our NYC Bias Audit Compliance Process
Consult on covered tools and request data
We work with your legal and HR team to identify which tools (if any) are likely to be covered by the law. We then provide a specific data request (uploaded to our secure portal).
Conduct the required audit and review results
We conduct the required audit, reporting on exactly the factors required by the law. We provide draft audit results for discussion and analysis. If any potential areas of concern are surfaced, we work collaboratively to drill into the data and understand potential solutions.
Issue the required public disclosures
We create and host a custom microsite to disclose the required public-facing audit results. We provide specific direction for linking the microsite to your company’s website to comply with the New York Bias Audit Law.
Finally, we draft the required candidate-facing notification requirements and provide you with the exact copy and posting instructions to become compliant.
Frequently Asked Questions
Learn more about NYC’s AI Bias Law (Local Law 144)
What is Local Law 144, AKA the NYC Bias Law, AKA the Automated Employment Decision Tool Law (AEDT)?
Are there other similar laws on the horizon in other jurisdictions?
Yes! Every jurisdiction is likely to regulate these tools differently, but there will definitely be regulation. We expect regulation to go into effect in California, Colorado, and likely Washington DC.
Most importantly, the EEOC has designated bias in automated systems as one of its top 3 focus areas for rule-making in 2023, and is actively working through their regulatory process now.
Won’t my vendor simply provide the audit? Why can’t we just do this audit internally?
No. The most recent guidance from NYC states that an auditor cannot be independent if the auditor “is or was involved in using, developing, or distributing the AEDT,” and “at any point during the bias audit has an employment relationship with an employer or employment agency that seeks to use or continue to use the4 AEDT or with a vendor that developed or distributed the AEDT.”
We don’t use AI in our hiring. Do I need to comply?
Many HR leaders we speak to say something similar, and are correct. However, the New York law applies not only to AI or Machine Learning tools but to any automated tool that qualifies.
Further, the law applies to hiring processes that use an automated tool at any point of the hiring funnel; it does not have to be the case that an automated tool is making the final hiring decision.
How do I know if the tools we use for hiring require audit?
Please contact us to schedule a free consultation to go over your specific use cases. As a very general rule, when a tool is screening some candidates out of hiring contention, or when a tool produces an “objective” score or rank-orders candidates, the tool may require audit. The most common use cases that end up requiring audit are:
- Resume screening conducted by ATS
- Assessments that provide a score or pass/fail metric
- Interview tools that produce scores or otherwise rank candidates
What happens if I don’t comply? What are the penalties?
Penalties have been set at up to $1,500 per day. Each tool that falls under the law that is not audited is a separate violation. So, a company that uses 3 automated tools, starting on the third day after violation, will incur a penalty of $4,500 per day indefinitely until they comply.
CONTACT US FOR A FREE CONSULTATION TO UNDERSTAND YOUR AI COMPLIANCE OBLIGATIONS
Our team is here to help you navigate emerging regulation of automated hiring systems. Get in touch today to learn more.