Understanding the Impact of New York City's Local Law 144 on Automated Employment Decision Tools

Greetings LinkedIn community,

I trust this post finds you well and informed. Today, I'm excited to shed light on the recent developments in New York City's employment landscape. On July 5, 2023, the city began enforcing Local Law 144, a significant regulatory milestone that holds implications for anyone navigating the realm of job applications and promotions. Let's delve into the essence of this law and how it could potentially reshape your employment journey.

Unveiling Automated Employment Decision Tools (AEDTs)

Local Law 144 introduces a pivotal concept known as Algorithmic Employment Decision Tools (AEDTs). These are sophisticated computer-based systems powered by cutting-edge technologies such as machine learning, data analysis, statistics, and artificial intelligence. Their purpose? To assist employers and employment agencies in making informed decisions regarding hiring and other employment-related matters. But hold on, these tools aren't mere aides – they can, in some cases, even replace traditional manual decision-making processes.

Navigating the Law's Mandates

So, what exactly are the requirements stipulated by this law? It boils down to three key pillars that employers must adhere to in order to remain compliant:

1. Annual Bias Audits: Employers are mandated to conduct an annual bias audit on any AEDT they utilize. This is a critical step to ensure fairness and transparency in the decision-making process.
2. Transparent Notification: Employers must provide job applicants and employees with a ten-day notice prior to subjecting them to the scrutiny of an AEDT. This notification should encompass details about the tool's purpose, the attributes it evaluates, and information on seeking reasonable accommodations if needed.
3. Publishing Bias Audit Results: Transparency is paramount. Employers are required to publish a summary of the latest bias audit results. This summary should encompass key information like the distribution date of the AEDT, the data sources used for the audit, and a clear explanation of the fairness measures in place.

Consequences of Non-Compliance

The stakes are high for employers who fail to comply. Penalties can reach up to $25,000 per violation, coupled with potential corrective actions. These actions could involve training employees or discontinuing the usage of the AEDT. The law, however, doesn't prescribe additional actions based solely on the bias audit outcomes.

Empowering Job Seekers and Employees

In the era of AI-driven hiring tools, Local Law 144 emerges as a shield of protection for job seekers and employees. It ensures a level playing field by preventing discrimination and fostering transparency in the hiring process. Yet, let's not forget other critical factors such as background checks, which can influence employment opportunities. To bolster your chances, consider conducting a self-background check to rectify any inaccuracies in your background information. This step can present a more accurate and favorable profile to potential employers.

In essence, Local Law 144 signifies a step towards a more equitable and accountable employment landscape. As professionals navigating these waters, it's imperative to remain informed and proactive, leveraging tools and resources at our disposal to secure the best opportunities. If you have any questions or insights to share, please feel free to engage in the comments below.

Wishing you all empowered and bias-free professional journeys,

Tesar

Director of Sales, Kredifi