By: Dave Schmidt
On December 9, 2022, the New York City Department of Consumer and Worker Protection issued an update on the status of Local Law 144 that will regulate the use of automated employment decision tools (AEDTs), wherein hiring decisions are made or substantially assisted by algorithmically-driven mechanisms.
On their website, the following was posted:
“December 2022 Update: The Department of Consumer and Worker Protection (DCWP) is working on rules for Local Law 144 of 2021 (automated employment decision tools). Due to the high volume of public comments, we are planning a second public hearing. In the meantime, we will not enforce Local Law 144 until April 15, 2023.”
This is a welcomed update as the original enforcement date of January 1st is less than three weeks away and the rules for complying with this law have not yet been finalized. Beyond the postponement of enactment, there is little additional detail provided. While cautiously optimistic that much needed updates to the September proposed rules will be made by the city, it is unclear what, if any, updates will be made. Further, the city does not provide any information on key dates, such as when the second public hearing will occur. As such, we all enter a holding pattern awaiting more news from the city.
While in the holding pattern, it would behoove employers seeking to come into compliance with this law for their AEDTs by the April 15 enforcement date to focus on the following: 1) identifying an independent auditor, 2) working with the auditor to prepare a general bias audit plan that can be refined as needed if the city updates the rules, and 3) begin the legwork on gathering the data needed for bias analyses and addressing any data quality issues. These near-term actions will allow employers, and their auditors, to move quickly if the rules for this law are further clarified.
The extension of enforcement from the city is much appreciated. Hopefully, any updates to the rules are forthcoming soon and will be communicated to the community in a timely manner. Stay tuned and more updates will be posted as information becomes available.
Links to relevant information published by New York City on this law:
DCI will continue to monitor the situation and provide updates as they happen.