Regulations and laws
+ NYC Local LAW 144 DETAILS
- Impacts companies hiring in NYC (whether based in NYC or not) that use a range of common HR tools for resume sorting, assessments, and interviewing
- Requires independent, third-party audit of certain systems for racial and gender bias
- Enforcement begins on July 5, 2023
- Fines are up to $3,000 per day per violation (large companies will likely have several violations)
- Learn more
+ NY State A00567
This is a NY statewide analogue to NYC Local Law 144. This bill has been referred to committee and is in its early stages. The current draft is likely to change but currently key provisions are:
- Requires disparate impact assessments provided by the vendor to employers
- Employers in turn must make the assessment available to candidates and file the results with the state
- Helpfully, the bill identifies the following list of technologies likely to be covered: “personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems…”
EEOC-Driven Federal Regulation
+ EEOC REGULATION DETAILS
- In 2021, EEOC launched its Artificial Intelligence and Algorithmic Fairness Initiative
- EEOC’s 2023 enforcement plan lists AI hiring bias as one of its top 3 priorities for regulation
- Additional federal legislation is likely in late 2023 or early 2024
+ AB 331
AB 331 has passed committee in the California Assembly and is undergoing public comment. The bill as currently written will go into effect on January 1, 2025. Key provisions include:
- Impact assessments to be submitted proactively to the state by both automated tool vendors and employers who use the tools
- List of protected classes is substantially larger than in the NYC law, including religion, sexual orientation, disability, and veteran status
- Substantial proactive notification requirements regarding the use of automated tools on employees and job candidates
- Private right of action — expect substantial litigation
+ New Jersey A4909
- Like NYC Local Law 144, requires independent bias audits of automated hiring tools
- Puts compliance burden on the vendor — the vendor must offer the audit as part of its service at no additional cost, and may not offer an automated tool for sale without the audit
- Status: This regulation has passed committee on a vote of 8-1 and referred back to the assembly
Washington, DC Stop Discrimination by Algorithms Law
+ WASHINGTON, DC LAW DETAILS
Last hearing 09/20/2022
Advancement could happen Q1 2023
Requires organizations using algorithms in hiring:
- Audit algorithms for discriminatory patterns
- Report results and any corrective actions
- Disclose and explain when algorithms negatively impact consumers’ outcomes
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Via our unique technology-driven process we handle everything–so you don’t have to!
Proceptual handles all aspects of AI compliance on your behalf–we provide everything you need to fulfill regulatory requirements including a report and custom micro-site with URL link for documentation purposes.
We understand regulations are always changing, which is why we built technology that can keep up.
As compliance regulations evolve, Proceptual’s solution proactively adapts to ensure your business stays in compliance without any extra work required on your end!
Our Proven Process
Proceptual’s technology-driven, proven process produces an easy-to-read report in less than four weeks.
Step 1: Scoping
- Is an audit necessary?
- Which tools must be audited?
Step 2: Data Collection & Cleaning
- Collect data and clean
- Comply with internal and external privacy requirements
Step 3: Auditing & Internal Review
- Produce Selection rate and Impact Ratio
- Review data internally for accuracy
Step 4: Audit Publication
- Publish audit results on custom Proceptual landing page and link back
Step 5: Notice Requirements Compliance
- Recommend notice requirements and certify their placement
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