Who Needs to Comply with the NYC Bias Audit Mandate?

Do I need an audit or am I exempt?

New York City’s legislation (Local Law 144) requiring bias audits of automated employment decision tools is coming into effect in just a few months (5 July 2023) and has left a lot of people wondering – do I need an audit or am I exempt?

Audits for employers and employment agencies

The key to who needs to have the audit boils down to three factors:

1. Use of an automated employment decision tool - an automated decision tool is a computational process that produces a simplified output used to aid or automate decision making for employment decisions. For more information, read our top tips here.
2. Use of these tools within New York City – the mandate applies to the evaluation of candidates or employees for promotion within New York City.

Those who meet these criteria need to have a bias audit performed by an independent auditor.

Vendors opting to get an audit

Vendors of automated employment decision tools may not be on the hook themselves under the legislation, but if their customers meet the above requirements, they’ll be the subject of the audit.

Not getting an audit puts vendors at risk of a client’s audit uncovering problematic information, which could be costly in terms of fines and reputation.

Benjamin Franklin aptly said, “By failing to prepare, you are preparing to fail,” which is why many vendors are taking control and getting an audit.

By getting an audit proactively, software vendors can air and mitigate issues ahead of time. They’re also able to provide assurance to current clients and future prospects that their software is in compliance.

More information on the NYC Bias Audit mandate

Love a good read and want out more information about getting ready for the NYC bias audit mandate? Want a summary of the key points? Find our FAQs here.