What You Need to Know
Overview
NYC Local Law 144 was the first law in the United States specifically regulating AI in hiring. It requires employers using automated employment decision tools (AEDT) to conduct annual bias audits and provide notice to candidates.
What is an AEDT?
An Automated Employment Decision Tool is any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output (score, classification, recommendation) used to substantially assist or replace discretionary decision making for employment decisions.
Key Requirements
- Annual Bias Audit: An independent auditor must conduct a bias audit within one year before using the AEDT
- Public Disclosure: Results of the most recent bias audit must be publicly available on the employer's website
- Candidate Notice: Notify candidates at least 10 business days before using an AEDT
- Alternative Process: Allow candidates to request an alternative selection process or accommodation
Bias Audit Requirements
The bias audit must calculate:
- Selection rates for each category (race/ethnicity, sex)
- Impact ratios comparing selection rates between categories
- Scoring rates and impact ratios (if applicable)
Notice Requirements
Candidates must be notified at least 10 business days before AEDT use. The notice must include:
Tip: The notice can be provided via the job posting, email, or a dedicated web page. EmployArmor can generate compliant notice language for your specific AEDT.
Penalties for Non-Compliance
Daily Penalties Add Up Fast
- $500 for the first violation
- $500 - $1,500 for each subsequent violation
- Each day of continued violation is a separate offense
- Use of AEDT without bias audit: each day is a violation
- Failure to provide notice: each instance is a violation
Example Exposure
Using an AEDT without a bias audit for 30 days could result in penalties of $500 + ($1,500 × 29) = $44,000. Plus separate violations for each candidate not properly notified.
How EmployArmor Helps
Bias Audit Tracking
Track your bias audit status and get reminders when annual renewal is due.
Notice Generator
Create compliant candidate notices customized for your specific AEDT.
Disclosure Page Template
Generate the required public disclosure page for your website.
Auditor Directory
Connect with independent auditors who can conduct your required bias audit.
Frequently Asked Questions
Do I need to hire an auditor?
Yes, the bias audit must be conducted by an independent auditor. The auditor cannot be involved in using or developing the AEDT being audited.
Does this apply to remote hiring for NYC positions?
Yes. If you're hiring for a position that will be performed in NYC, or for a role at an NYC-based employer, the law applies regardless of where the hiring process takes place.
What if my vendor provides a bias audit?
You can use a vendor-provided bias audit if it meets the law's requirements, was conducted within the past year, and the vendor makes it available to you for publication.
Where do I publish the bias audit results?
On your careers page or any publicly accessible website page. EmployArmor can generate a compliant disclosure page template for you.
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NYC Is Actively Enforcing
Unlike other states, NYC's law is already in effect. Make sure you're compliant today.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Employment laws vary by jurisdiction and change frequently. Consult a qualified employment attorney for guidance specific to your situation. EmployArmor provides compliance tools and resources but is not a law firm.