Independent Audit of Employment Decision Tools in Compliance with New York City Local Law 144 of 2021
Performed for SampleCo LLC (hereafter “SampleCo”), a Delaware limited liability company.
Proceptual, Inc. (hereafter, “Proceptual”) performed an independent audit of SampleCo’s use of certain automated hiring tools as outlined below. The audit was conducted on data compiled between June 1, 2022, and June 12, 2023; the audit was published on July 11, 2023 and is valid until July 11, 2024.
Tools Audited
The following tools were audited on behalf of SampleCo; the tools distribution date is also listed.
- Certain pre-hire assessments including:
- Marketing Skills Assessment — distribution date January 2022
- Technical Skills Assessment — distribution date January 2022
These assessments are delivered by and were in large part authored by an external vendor, VendorCo. The internal management team of SampleCo chose the appropriate exam and in some limited cases wrote or edited assessment questions. These assessments were used to determine whether candidates should move to the next phase of the employment application process.
SampleCo asked Proceptual to perform an audit of this tool; however, Proceptual did not make a determination whether the tool falls under the auspices of Local Law 144. Proceptual did not evaluate any other tool on behalf of SampleCo.
Status as Independent Auditor
Neither Proceptual nor its equity owners or managers have any financial stake in SampleCo, except under the condition that if SampleCo becomes publicly traded, owners or managers may own less than 1% of publicly traded shares in index funds or other instruments. Proceptual LLC has no relationship with SampleCo except its status as an independent auditor, including no employment relationship.
Neither Proceptual nor its equity owners or managers have any financial stake in any of the automated tools here audited; Proceptual and its equity owners and managers are not and have not been involved in the developing, use, or distribution of any of the tools audited here. Proceptual has no financial relationship with the client except our payment for services rendered for this AI audit.
Audit Process
The following information was determined for the tool:
- Selection Rate for each category, with Selection Rate defined as “the rate at which individuals in a category are either selected to move forward in the hiring process or assigned a classification.”
- Impact Ratio for each category
Audit results for SampleCo’s selection tool. Distribution date January 2022
This audit was conducted using historical data provided by client to Proceptual. We believe that we were furnished adequate data to complete this analysis.
Gender Analysis
| _ | # of Applicants | # Selected | Selection Rate | Impact Ratio |
| Male | 118 | 101 | 85.59% | 1.00 |
| Female | 1074 | 837 | 77.93% | 0.91 |
For 35 applicants, gender was unknown; those candidates were excluded from the analysis.
Race/Ethnicity Analysis
| _ | # of Applicants | # Selected | Selection Rate | Impact Ratio |
| Hispanic or Latino | 61 | 49 | 80.33% | 1.00 |
| White (Not Hispanic of Latino) | 749 | 589 | 78.64% | 0.97 |
| Black or African American (Not Hispanic of Latino) | 32 | 23 | 71.88% | 0.89 |
The following groups were less than 2% of the sample size and were therefore excluded from the analysis. Selection rate is noted for each of these groups.
- Asian (Not Hispanic or Latino)) (n=9, selection rate 100%)
- Native Hawaiian or Pacific Islander (n=5, selection rate 80%)
- Native American or Alaska Native (n=0)
- Two or More Races (n=0)
No group showed statistically significant disparate impact.
For 337 candidates, race/ethnicity was unknown; those candidates were excluded from the analysis.
Intersectional Analysis
| _ | _ | _ | # of Applicants | # Selected | Selection Rate | Impact Ratio |
| Hispanic or Latino | Female | 50 | 39 | 78.00% | 0.88 | |
| Non/Hispanic or Latino | Male | White | 70 | 62 | 88.57% | 1.00 |
| Female | White | 679 | 527 | 77.61% | 0.88 | |
| Black or African American | 24 | 19 | 79.17% | 0.89 | ||
The data provided showed a substantial majority of applicants were female (90%). As such, when combined with race/ethnicity for intersectional analysis, only one category of male applicants was larger than 2% of the applicant pool.
The following groups represent less than 2% of the overall sample size and were therefore excluded from the analysis. As required, their Impact Ratio is noted.
- Hispanic or Latino Male (n=11, Selection Rate 91%
- Black or African American Male (n=8, Selection Rate 50%)
- Native Hawaiian or Pacific Islander Male (n=1, Selection Rate 100%)
- Asian Male (n=1, Selection Rate 100%)
- Native American or Alaska Native Male (n=0)
- Native Hawaiian or Pacific Islander Female (n=4, Selection Rate 75%)
- Asian Female (n=7, Selection Rate 100%)
- Native American or Alaska Native (n=0)
No group showed statistically significant disparate impact.
Published Results
As of July 11, 2023, Proceptual has confirmed that the results of this audit are linked on SampleCo’s hiring page at the following URL:
Notice to Candidates and Employees
An automated employment decision tool may be used in connection with the assessment and evaluation of candidates for this role. To request alternative accommodations or selection process, email your request to ________________. The following job qualifications and characteristics will be assessed:
- Job-necessary skills in the use of Microsoft Excel
- Job-necessary skills in general business operations
Information about SampleCo’s data retention policy is available upon written request by writing to: legal@sampleco.com.
Data Retention Policy
SampleCo’s Privacy Policy can be found here. Data from the audited tool may be retained indefinitely. When you take a test using the platform, you will be asked to provide information such as your first name, last name, and email address. Data for the tool is collected by SampleCo directly when a candidate takes a test. The data collected is supplied as test responses by the candidate. SampleCo retains this data indefinitely.
Disclaimers and Limitations
Proceptual is not a law firm and has not provided legal advice to SampleCo.
Proceptual conducted its audit with information supplied by SampleCo. We believe we were given access to proper and complete data for performing this audit. Proceptual relied on interviews with SampleCo management to identify tools to be audited.