New York City Issues Final AI Rules and New Enforcement Date

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The NYC Department of Consumer and Worker Protection (DCWP) has released updated guidelines to enforce its AI law, NYC Local Law 144 of 2021. This law regulates the use of Automated Employment Decision Tools (AEDTs) by employers and employment agencies in making employment decisions.


Initial rules were proposed on September 23, 2022, with updates following a public hearing on November 4, 2022, and further revisions on December 23, 2022. After a hearing on January 23, 2022, the final version of the rules was released on April 6, 2023. Enforcement has been delayed until July 6, 2023.


The AI law applies to AEDTs that significantly aid or replace discretionary decision-making. The final rule defines this term in three specific ways. Employers must identify any tools they use that meet these criteria and comply with the requirements for conducting a bias audit, publishing the results, and providing notice to candidates and employees.


The audit must be conducted by an independent auditor, who must not have ties to the AEDT, its developer, or the employer using the AEDT. The final rules provide detailed instructions on the data that must be analyzed for a compliant audit.


Employers are required to disclose specific information related to the audit on their websites, including the date of the most recent audit, a summary of the results, and other relevant data. This information must be available for at least six months after the AEDT’s latest use.


Employers must also give at least 10 business days’ notice to candidates and employees before using an AEDT. While the law requires employers to consider alternative evaluation processes as a reasonable accommodation, they are not obligated to provide such alternatives.


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