In a recent update, the New York City Department of Consumer and Worker Protection (the “Department”) has released the much-awaited Final Regulations for the implementation of Local Law Int. No. 144 (Local Law 144). This law requires employers to adhere to specific bias audit requirements when utilizing automated employment decision tools, commonly known as artificial intelligence (AI).

Earlier, we had informed our readers about the temporary delay in the enforcement of Local Law 144, as the city was working towards establishing comprehensive rules to govern its implementation. However, with the issuance of the Final Regulations, the Department has now provided clarity and guidance for employers on how to comply with this important legislation.

It is important to note that the enforcement of Local Law 144 has been further postponed to July 5, 2023, giving employers additional time to understand and implement the necessary measures to ensure compliance. This extension offers a valuable opportunity for organizations to review their existing AI employment decision tools and assess their potential biases.

Employers of any size that utilize one or more automated employment decision tools to screen both internal and external candidates residing or working in New York City will be subject to the requirements outlined in Local Law 144. Therefore, it is crucial for employers to familiarize themselves with the provisions of the law and take proactive steps to address any biases that may exist within their AI systems.

The effective date of these regulations is set for July 5, 2023. These regulations are urging Employers to understand the Final Regulations, conducting bias audits of their AI employment decision tools, and implementing necessary changes to ensure fairness and compliance.

Given the intricate legal and technical definitions encompassed within Local Law 144 and its Final Regulations, please consult and work with your legal counsel to thoroughly assess whether your company falls under the scope of coverage due to your current utilization of an “automated employment decision tool” (AEDT). If it is determined that your organization is indeed covered, it is crucial to strategize on how to navigate the intricate requirements and ensure compliance in a comprehensive manner.