United States of America: Implemented Local Law on Automated employment decision tools (Local Law 144) requiring a bias audit of AI

On 5 July 2023, the Local Law on Automated employment decision tools (Local Law 144) requiring a bias audit of AI was implemented. The Law applies to employers and employment agencies using an automated decision tool, defined as any computational process that substantially assists or replaces discretionary decision-making that affects natural persons in employment decisions. The Law requires users of such a tool to conduct a bias audit prior to the use, further distinguishing whether the tool selects or scores candidates. The audit must be carried out by an independent auditor and includes calculating different quotas of candidates or employees by ethnicity and sex. Finally, the candidates or employees must be notified about the use of such a tool.