NY Rule Automated Employment Decision Tools

New York City has taken a significant step towards ensuring fairness in the hiring process by implementing a new rule to regulate the use of Automated Employment Decision Tools (AEDTs). The Department of Consumer and Worker Protection (DCWP) will enforce this rule, which aims to eliminate bias and provide equal opportunities for all candidates. Under the new rule, employers and employment agencies are required to provide notice to candidates at least 10 business days before using an AEDT. This notice can be given through the employer's website, job postings, or via U.S. mail or email. The goal is to inform candidates about the use of AEDTs in the hiring process and allow them sufficient time to prepare. Additionally, employers and employment agencies must conduct a bias audit of their AEDTs and make the results publicly available. The audit must be performed by an independent auditor who has no financial interest in the employer or the AEDT vendor. This ensures transparency and accountability in the use of AEDTs. The DCWP initially proposed the rule in September 2022 and received feedback from various stakeholders, including employers, employment agencies, law firms, AEDT developers, and advocacy organizations. Taking these comments into account, the rule was revised in December 2022 to address concerns and improve its effectiveness.By implementing this rule, New York City aims to level the playing field and create a fair hiring process that is free from bias. The DCWP will closely monitor compliance with the rule and take enforcement action against employers and employment agencies that fail to adhere to its requirements.