United States of America: Issued Notice of Adoption of Final Rule on Local Law on Automated employment decision tools (Local Law 144) requiring a bias audit of AI

On 6 April 2023, New York City’s Department of Consumer and Worker Protection (DCWP) issued a Notice of Adoption of Final Rule to implement new legislation regarding automated employment decision tools outlined in Local Law 144 of 2021 which prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit, information about the bias audit is publicly available, and specific notices have been provided to employees or job candidates. In particular, the final rule clarifies the requirements for a bias audit, the requirements for the published results of the bias audit, the requirements for notices that employers and employment agencies must provide to employees and candidates for employment, and other obligations for the employer or employment agency.