NYC AEDT Law Compliance for Hiring: What Employers Need to Know

With the rise of artificial intelligence (AI) and its increasing use in hiring processes, the New York City (NYC) government has implemented Local Law 144 to ensure fair and unbiased hiring practices. This law, also known as the Artificial Intelligence (AI) Application and Hiring Transparency Law, requires employers to comply with certain regulations when using AI in their hiring process. In this article, we will delve into the details of NYC AEDT Law compliance for hiring and provide insights for employers to ensure they are following the law.

Understanding NYC Local Law 144

The NYC Local Law 144 was enacted in December 2019 and became effective in March 2020. It was created to address concerns about potential bias and discrimination in the use of AI in hiring. The law applies to any employer with 15 or more employees, including employment agencies and labor organizations. It requires employers to disclose the use of AI in their hiring process and to provide transparency and accountability in the use of AI for job applicants.

What is an AEDT?

An AI Entity Decision Tool (AEDT) is defined by the NYC law as "a computerized tool or system that assists or replaces the decision-making process for a personnel decision." This can include various AI technologies such as resume screening software, online assessments, and video interviews. The law aims to regulate the use of these tools to ensure they are not discriminatory or biased against protected classes under federal, state, and local laws.

Compliance Requirements for Employers

Under the NYC AEDT Law, employers must comply with the following regulations:

1. Disclosure of Use of AEDT

Employers must disclose the use of AEDTs in their hiring process, including the types of AI tools used, how they are used, and the criteria used to evaluate job applicants. This disclosure must be provided to job applicants prior to their interview or assessment.

2. Access to Information for Job Applicants

Job applicants must be provided with information on how to request and receive more information about the use of AEDTs in their hiring process. Employers must also provide job applicants with a "meaningful opportunity to review, challenge, and correct" any incorrect or incomplete information used in the hiring decision.

3. Annual Report to NYC Commission on Human Rights

Employers must submit an annual report to the NYC Commission on Human Rights detailing their use of AEDTs in the hiring process. This report must include the number of job applicants considered, the number of job applicants evaluated by AI, and the number of job offers made based on AI evaluations.

4. Recordkeeping Requirements

Employers must maintain records of all job applicants evaluated by AI, including any data used in the decision-making process. This information must be retained for a minimum of three years.

Non-Compliance Penalties

Failure to comply with the NYC AEDT Law can result in significant penalties for employers. The NYC Commission on Human Rights can impose a civil penalty of up to $250,000 for violations, and job applicants may also bring a private cause of action for any discrimination or harm caused by the use of AI in the hiring process.

Critical Audit of NYC's AI Hiring Law

Recently, the law firm DLA Piper conducted a critical audit of NYC's AI hiring law, highlighting the increased risks for employers. The audit found that many employers were not fully complying with the law's requirements, particularly in the areas of disclosure and recordkeeping. The audit also emphasized the need for employers to thoroughly review the data used in their AI decision-making processes to ensure it is not biased or discriminatory.

Takeaways for Employers

To ensure compliance with the NYC AEDT Law, employers should take the following steps:

• Review and update hiring processes to ensure compliance with the law.
• Provide a clear and detailed disclosure to job applicants about the use of AI in the hiring process.
• Establish a process for job applicants to access and request more information about their AI evaluation.
• Keep accurate and detailed records of job applicants evaluated by AI.
• Conduct regular audits to ensure AI tools are not biased or discriminatory.

Conclusion

In today's digital age, the use of AI in hiring is becoming more prevalent. However, it is crucial for employers to understand and comply with the regulations set forth by the NYC AEDT Law. By following the guidelines and best practices outlined in this article, employers can ensure they are using AI in a fair and unbiased manner and avoid penalties for non-compliance.

For more information on how to comply with the NYC AEDT Law, employers can visit the NYC Commission on Human Rights website or seek legal counsel. Let's work together to create a fair and inclusive hiring process for all.