New York City Finalizes Regulations for AEDT Law and Will Begin Enforcement July 5th
April 12, 2023
New York City (“NYC”) has announced that it will begin enforcement of its Automated Employment Decision Tools law (“Local Law 144”) on July 5, 2023. In anticipation of enforcement, NYC’s Department of Consumer and Worker Protection (“DCWP”) published the final regulations (“Final Rule”) for Local Law 144 on April 6th. Enforcement of Local Law 144 was set to take effect earlier this year but was repeatedly delayed.
Local Law 144 places substantial obligations on employers and employment agencies using Automated Employment Decision Tools (AEDTs) in hiring and promotions in NYC. AEDTs are defined as selection tools using machine learning, statistical modeling, data analytics, or artificial intelligence that meet certain technical requirements. Among other obligations, before using an AEDT for hiring or in promotions, employers must ensure that the tool is audited for bias and must make a summary of the results of the audit publicly available. In addition, employers must notify candidates and employees that an AEDT will be used to evaluate them at least 10 business days before the tool is used.
Prior to the Final Rule, DCWP published two draft versions of the rule which were the subject of significant commentary from the regulated public. The Final Rule includes some changes from the last version of the draft rule that was published in December 2022. For example, the Final Rule expands the definition of covered AEDTs.
FortneyScott will keep clients informed of future developments related to Local Law 144.
Reach out to any FortneyScott attorney for assistance in preparing for enforcement of Local Law 144 or contact us at info@fortneyscott.com for additional information.
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