NYC Bias Audit Law: Clock ticking for Employers and HR Talent Technology Vendors
(Original Policy Briefing published at Center for AI & Digital Policy — CAIDP)
On January 1, 2023, the New York City (NYC) Local Law 144, aka NYC bias audit law for automated employment decision tools, will go into effect. The legislation passed in the last days of 2021. So, with only a few months left for organizations to be compliant, it is a good time to discuss the impact of this legislation and highlight the areas for improvement as the legislation starts to mature.
The NYC legislation is one of the first examples in the world of a jurisdiction requiring algorithmic audits on tools used by employers for employment decisions. The legislation was initially introduced in February 2020 by the NYC Council. The initial draft of the legislation (Int: No 1894) was focused on vendors interested in the “Sale of Automated Employment Decision Tools.” It required the vendors to have their products audited for bias before they could sell their tools in NYC. In the last days of 2021, the NYC Council introduced an amended draft, and in less than 48 hours also voted and passed the legislation for the mayor’s signature. In this new version, the focus of the law, and henceforth the responsibility and liability, changed from vendors to employers. Such shift aligns with the employers’ existing…
