New York City Adopts Final Rules On Automated Decision-making Tools, AI In Hiring

On April 6, 2023, the New York City Department of Consumer and Worker Protection (DCWP) adopted highly anticipated final rules implementing the city's law regulating the use of automated employment decision tools (AEDT) tools in hiring that will take effect on July 5, 2023.

The AEDT law, which took effect on January 1, 2023, restricts the use of automated employment decision tools and artificial intelligence (AI) by employers and employment agencies by requiring that such tools be subjected to bias audits and requiring employers and employment agencies to notify employees and job candidates that such tools are being used to evaluate them.

The final rules come after the DCWP first proposed rules in September 2022, which it later revised in December 2022 after a public hearing. The final rules include a number of changes to earlier versions, including expanding the scope of "machine learning, statistical modeling, data analytics, or artificial intelligence,"