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New York City Releases FAQ Guidance on the Use of Automated Employment Decision Tools

11 Jul


Update applicable to:

All employers with employees performing work in New York City

What happened?

Four days before enforcement of New York City Local Law 144 (“Local Law 144”) is set to begin, the Department of Consumer and Worker Protection (“DCWP”) published FAQ guidance governing the use of Automated Employment Decision Tools (AEDTs). 

What are the details?

The DCWP clarified several key points:

  1. Applicability of the Law: The law applies to positions physically located in NYC and notice and bias audit requirements must be fulfilled for candidates or employees residing in the city. For positions located outside NYC or fully remote positions, the law does not apply, regardless of the candidate’s residence.
  2. Bias Audit Data Requirements: Employers have flexibility in using historical data for the bias audit, with no specific geographical or time parameters. However, employers must explain the data used in the bias audit results, and limiting the historical data to certain time periods may raise concerns under anti-discrimination laws.
  3. Notice Requirements: Notice of an AEDT can be provided in various ways, such as job postings, postal mail, email, or employer websites. The notice does not have to be position-specific, and the 10-business-day notice requirement is measured from the time the first notice is posted.
  4. AEDTs for Talent Sourcing: The law only applies to candidates or employees who have applied for a specific position. If an AEDT is used solely for evaluating candidates who have not yet applied for a specific position, no bias audit or notice is required.

While the DCWP intends to release FAQ guidance to assist employers with compliance, enforcement of the law is set to begin on July 5, 2023.

For more information, please see the links below:

Newly Updated FAQs

Automated Employment Decision Tools (Updated)

Public Comments on Automated Employment Decision Tools

Law Firm Summary

What do employers need to do? Employers will need to review the above links and our previous communications here, here, and here, in order to ensure compliance with the new statutory requirements.            

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's New York PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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