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NYC Issues Proposed Regulations on Use of AI in Employment Decisions

As we previously reported, on November 10, 2021, the New York City (NYC) Council passed a bill (Int 1894-2020) that regulates employers and employment agencies’ use of “automated employment decision tools” in making employment decisions. The law conditions the use of automated employment decision tools by employers and employment agencies on their compliance with conducting bias audits which must be publicly posted on the employer’s website and the furnishing of notifications to candidates and employees which permits them to opt-out. On September 23, 2022, the New York City Department of Consumer and Worker Protection published proposed rules to implement this law which will take effect on January 1, 2023.

The proposed rules define several key terms, identify the requirements for a bias audit, address obligations for publishing the results of a bias audit, and specifies the notices to be furnished to employees and candidates for employment.

Next Steps for Employers

NYC employers who use AI in the recruitment, screening and internal promotion processes are strongly encouraged to read the proposed rules in their entirety to ensure that they fully understand their potential obligations under the law. Employers should carefully examine any AI tools they plan to use in their internal and external recruitment, hiring and promotion processes.

The New York City Department of Consumer and Worker Protection has scheduled a public hearing on the proposed rules for Monday, October 24, 2022, at 11:00 a.m. Interested parties may submit comments on or before the date of the hearing. Comments may be submitted online through the NYC Rules website; by email to Rulecomments@dcwp.nyc.gov; by mail to Carlos Ortiz, Senior Advisor for Policy and Intergovernmental Affairs, New York City Department of Consumer and Worker Protection, 42 Broadway, 8th Floor, New York, NY 10004; by fax at 347-788-4689; or by speaking at a public hearing.

It is also recommended that employers and employment agencies work with their legal counsel to develop and implement practices that comply with the notice provisions required by the law.

HR Works will continue to monitor this topic and provide updated information as needed.

HR Works, Inc., headquartered at 200 WillowBrook Office Park in Fairport (Rochester), New York, with an office in East Syracuse, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.