New York City and New Jersey are introducing legislation to require bias audits of automated employment decision tools. New York City Local Law 144 will require audits of these tools from July 2023, while the New Jersey Assembly Bill 4909, which would introduce similar requirements if passed, has recently been introduced. The legislation is being proposed as concerns grow around the risks posed by technology including artificial intelligence. Companies will need to take steps to manage risks and procure any necessary interventions, such as bias audits, to remain compliant.

New York City's Local Law 144 requires bias audits of automated employment decision tools, and employers and employment agencies who use these tools within the city must have a bias audit performed by an independent auditor. Vendors of these tools may not be directly affected by the legislation but may still be subject to audits if their clients meet the above criteria. Vendors are encouraged to proactively get an audit to mitigate potential issues and provide assurance to clients and prospects that their software is in compliance. A free consultation or quiz is available to determine if an audit is necessary. This blog article is for informational purposes only and is not intended to provide legal advice.

The New York City Council has mandated bias audits of automated employment decision tools (AEDTs) used to evaluate employees for promotion or candidates for employment in New York City. The NYC Bias Audit Law requires employers to make a summary of the results of the bias audit publicly available on their website, increasing transparency in the hiring process. The law requires testing for disparate impact against component 1 categories required to be reported by employers, including sex and race/ethnicity categories. The delayed enforcement deadline provides an opportunity to collect necessary data or use test data for the bias audit. The article advises early preparation by employers to ensure compliance with the law.

Policymakers in the US are starting to prioritize the regulation of automated employment decision tools and systems, with Illinois enacting the Artificial Intelligence Video Interview Act in 2020. New York City has passed legislation mandating bias audits of such tools and California has proposed amendments and new laws to regulate their use. The New York City legislation requires independent, impartial bias audits of automated tools used in hiring, assessment and promotion, as well as notification to candidates and employees of their use. California focuses on making it unlawful to use automated tools that discriminate on the basis of protected characteristics, and proposes restrictions on the electronic monitoring of employees. All legislation has strict notification, collection and data retention requirements for employers and vendors. Employers and vendors using AI employment tools are advised to adopt reliable systems of governance and auditing to avoid discrimination in their use and stay ahead of emerging regulations.

The Massachusetts HD 3051 bill regulates four separate systems, including automated decision systems (ADS), worker information systems (WIS), productivity systems, and electronic monitoring. The bill applies to employers who collect worker data, use electronic monitoring, or use ADS tools to make employment-related decisions. Employers are required to provide notice of data collection and electronic monitoring activities, as well as conduct algorithmic or data protection impact assessments. Workers have rights concerning their data, including requests for information, the right to correct inaccurate information, and the right to access their data. The need for transparency in AI is growing as its use becomes more prevalent in the workplace. Businesses must take early action to comply with legal requirements and ensure responsible use of algorithms.