Update Applicable to:
All employers who use AI decision-making tools in New York City.
On December 11, 2021, the New York City Council passed a measure (“the NYC measure”), which imposes restrictions on automated decision-making tools.
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What are the details?
Effective January 2, 2023, employers will be prohibited from using AI tools to:
- Screen job candidates for employment; or
- Evaluate current employees for promotion.
Employers may use the AI tools if it has been subject to a “bias audit” conducted not more than one year before using the tool.
Employers who utilize an employment decision tool must conduct a biased audit and publish a summary of the audit results on their websites. They must also notify all NYC employees and/or job candidates that:
- The tool will be used in connection with the assessment or evaluation of their employment or candidacy; and
- Specify the job qualifications and characteristics the tool will use to assess or evaluate.
Utilizing an automated employment decision tool without a compliant bias audit exposes employers to civil penalties of up to $500 on day one, followed by penalties of $500 to $1,500 every day thereafter. Failure to properly notify candidates or employees about using such tools constitutes a separate violation.
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For more information, please see the links below:
What do employers need to do?
Employers should review the links above and refrain from using AI decision-making tools during an assessment and evaluation of an employee or job candidate unless they conduct annual bias audits and share the results on their website.