Active Now - Already in Effect

NYC Local Law 144: AI Hiring Bias Audits

New York City's groundbreaking law requiring bias audits for AI hiring tools. If you use AI to screen resumes, rank candidates, or make hiring decisions in NYC, this law applies to you. Already in effect since July 2023.

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What is an AEDT?

Automated Employment Decision Tool - Any AI system that substantially assists or replaces hiring decisions

Examples of AEDTs

  • Resume screening AI that filters candidates
  • Video interview analysis tools
  • Automated candidate ranking systems
  • Skills assessment scoring algorithms
  • Chatbots that screen applicants

Not Covered

  • ✗Job posting distribution tools
  • ✗Applicant tracking systems (ATS) without AI
  • ✗Tools that only schedule interviews
  • ✗Manual review without AI assistance

Compliance Requirements

Four core obligations for employers and vendors using AEDTs in NYC

Annual Bias Audit

Independent bias audit required at least once per year

Annual

Candidate Notice

Notify candidates/employees at least 10 days before use

10 days prior

Public Disclosure

Post audit results publicly on website

Within 30 days

Alternative Process

Provide alternative selection process upon request

On request

Bias Audit Requirements

What the independent bias audit must include

Test for disparate impact across race/ethnicity and sex
Calculate selection rates and impact ratios
Use independent auditor (not vendor or employer)
Conduct within one year before use
Test on historical data or test data
Document methodology and results
Make results publicly available

Protected Classes

Bias audits must test for disparate impact across these protected categories:

Race
Ethnicity
Sex
Age
Disability

Note: Intersectional analysis (e.g., Black women) is encouraged but not required

Penalties & Enforcement

Enforced by NYC Department of Consumer and Worker Protection (DCWP)

First violation (any requirement)

LOW
$500

Subsequent violations (same requirement)

MEDIUM
$500-$1,500

Each day of continuing violation

HIGH
Additional $500-$1,500

Penalties Can Add Up Quickly

Each day of continuing violation is a separate violation. If you use an AEDT without a bias audit for 30 days, that's 30 violations at $500-$1,500 each = $15,000-$45,000 in potential fines.

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Quick assessment to understand if your AI hiring tools comply with NYC Local Law 144. Already in effect.

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