On 11 December 2021, the Law in relation to automated employment decision tools (2021/144) was introduced to the New York City Council. The Law contains several compliance duties regarding the disclosure, opting-out and audit of automated employment tools. Companies that use automated employment tools are responsible for disclosing to their applicants how the software is used in the application process. Applicants must receive the option to opt out of AI-supported hiring processes and have a person review their application. Furthermore, entities will be required to conduct an annual audit of AI software for bias. Undisclosed or biased AI use will be fined up to 1,500 USD.
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