Detailed overview
New York City regulates AI in employment through Local Law 144 of 2021, which covers automated employment decision tools, or AEDTs. An AEDT is a computer-based tool that substantially assists or replaces discretionary decision-making in employment decisions such as hiring or promotion.
Employers and employment agencies may not use an AEDT unless the tool has been subject to a bias audit within one year of use. Information about the bias audit must be made publicly available, and required notices must be provided to job candidates or employees. Enforcement began on 5 July 2023.
A bias audit must be completed before use of the AEDT. The employer or employment agency must also provide notice to covered job candidates or employees. Official FAQ materials explain that the required audit and notice obligations may apply where the job or employment agency has a New York City connection, including certain remote-work and agency-location scenarios.
New York City's AEDT law is not a general AI law. It does not regulate all AI systems used by businesses. It is a targeted employment law focused on automated tools used to screen candidates or employees. However, it is one of the most concrete AI employment rules in the United States and should be assessed whenever AI is used for hiring, ranking, screening, promotion or similar employment decisions in New York City.
Enforcement is handled by the New York City Department of Consumer and Worker Protection. Employers and employment agencies can face enforcement risk if they use AEDTs without a recent bias audit, fail to publish the required audit summary or fail to provide required notices.
Practical requirements & details
Sourced from New York City Local Law 144 of 2021 — automated employment decision tools — enforced by the NYC Department of Consumer and Worker Protection (enforcement began 5 July 2023).
Defined terms
- AEDT — computer-based tool that substantially assists or replaces discretionary decision-making in employment decisions (hiring, promotion).
Bias audit
- Must be completed before use of the AEDT.
- Must be repeated within one year of use.
- Audit summary published publicly.
Notice
- Job candidates or employees must receive required notices.
Scope nuances (FAQ)
- Audit and notice obligations may apply where the job or employment agency has a NYC connection — including some remote-work and agency-location scenarios.
- AEDT law is not a general AI law; it targets automated employment decision tools only.
Penalties
- Enforcement risk for using AEDTs without a recent bias audit, failure to publish the audit summary or failure to provide required notices.
- Enforced by the NYC Department of Consumer and Worker Protection.
Related entries
See also the federal-level entry for the United States, which covers the broader US AI regulatory framework (executive orders, NIST AI Risk Management Framework, sectoral regulators, and US-wide federal initiatives).