NYC Local Law 144: What Employers Actually Need to Know

New York City Local Law 144 went into effect in July 2023. It is the first US law to impose mandatory bias audit requirements on employers using automated employment decision tools (AEDTs). If your organization hires in New York City and uses any automated tool that influences employment decisions, it applies to you.

What counts as an AEDT

The law defines an AEDT as “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision-making.”

This definition covers a wide range of tools. Résumé screening algorithms, video interview scoring systems, and predictive assessments all potentially qualify.

What the bias audit requires

A bias audit must be conducted by an independent auditor. It must calculate selection rates by sex, race/ethnicity, and intersectional combinations, and compare those rates across groups to detect disparate impact. Results must be made publicly available.

The audit covers the tool as deployed by that specific employer. A vendor audit does not satisfy the requirement if the tool was not audited in your deployment context.

What employers must also do

Beyond the audit, employers must:

1. Notify job candidates and employees that an AEDT is being used at least ten business days before the tool is applied
2. Disclose the type of data used and how it is used upon request
3. Provide an accommodation process for individuals who request an alternative selection process

Common compliance gaps

Most organizations that think they are compliant have gaps in one of three areas. First, they have a vendor audit but not an employer-level audit. Second, their notification is buried in an application flow that candidates do not read. Third, they have not documented their accommodation process at all.

How this connects to broader standards

LL144 is the leading edge of what is likely to become broader AI hiring regulation. EEOC guidance on AI and employment, Colorado’s SB 24-205, and emerging federal frameworks are all directionally aligned. What LL144 requires today will likely be required more broadly within five years.

Building a process that satisfies LL144 is also a process that satisfies the UGESP adverse impact requirements and positions the organization well for whatever regulation follows. A connected audit trail is what makes that defensibility durable.