Daily News

View All News

New York City delays enforcement of law over use of AI in hiring tools

December 16, 2022

New York City won’t start enforcing its law over automated employment decision tools until April 15, 2023.

The New York Department of Consumer and Worker Protection in a “New Laws & Rules” online update said the delay came because of the high volume of public comments. It’s also planning a second public hearing on the law.

Initially, Local Law 144 was to take effect Jan. 1.

The law would, according to Staffing Industry Analysts’ “North America Legal Update Q4 2022,” require the following:

  • Any such tool must be subjected to an annual, independent “bias audit,” with a publicly available summary.
  • Employers must provide each candidate (internal or external) with 10 business days’ notice prior to the use of the tool.
  • The notice must list the “job qualifications and characteristics” used by the tool to make its assessment.
  • The sources and types of data used by the tool, as well as the applicable data-retention policy, must be made available publicly (or upon written request from the candidate).
  • Candidates must be able to opt out and request an alternative selection process or accommodation.

The widespread adoption of these tools has caused some regulators and legislators to be concerned about possible bias, VentureBeat reported. However, bias audits of AI tools is complex, requiring analysis and a large amount of data.