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October 2022: New York City Issues Proposed Rules on Law Aimed at Curbing Artificial Intelligence Bias in Employment Decisions

19 Oct

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Update Applicable to:
All employers that use Artificial Intelligence for hiring and promotions in New York City.

What happened?
On September 23, 2022, New York City’s Department of Consumer and Workplace Protection (DCWP) released proposed rules implementing Local Law Int. No. 1894-A regulates the use of automated employment decision tools (AEDT) in hiring and promotion decisions.

What are the details?
Effective January 1, 2022, the proposed rules will restrict employers from using AEDT in hiring and promotion decisions unless it has been the subject of a biased audit by an “independent auditor” no more than one year before use.  The law also imposes certain posting and notice requirements on applicants and employees.

The DCWP’s proposed rules are currently under consideration and may invite more questions than answers as uncertainty about the requirements lingers.  Comments can be submitted to the DCWP, and a public hearing will be held on October 24, 2022, to determine whether any or all the rules will be formally adopted.  

Below are links that contain a summary of the proposed rules.

For more information, please see the links below:

NYC Department of Consumer and Workplace Protection (DCWP)

Notice of Public Hearing and Opportunity to Comment on Proposed Rules

Local Law Int. No. 1894-A

Article 1Article 2Article 3

What do employers need to do?
Employers should review the links provided above and be on the lookout for any updates on the proposal come October 24th when the public hearing is held.

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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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