Employers and employment agencies meeting the following criteria must have a bias audit by 15th April 2023:

• Using an automated employment decision tool (e.g., resume screening)
• To assess candidates or employees

• Seeking a position or promotion
• Residing in New York City

Suppliers of the automated employment decision tool may be asked by their employer clients to provide the audit as a condition of purchase or to work with the auditor the employer client selects.

An automated employment decision tool is a computational process derived from:

• Machine learning
• Statistical modelling
• Data analytics

or Artificial intelligence that produces a simplified output such as a:

• Score
• Classification
• Recommendation

And is used to aid or automate decision making for employment decisions.

• Resume screening tools
• AI video interviews
• Game-based assessments
• Image-based assessments
• Psychometric assessments

A bias audit is an impartial evaluation of an automated employment decision tool carried out by an independent auditor that should, at a minimum, include assessing for disparate impact against category 1 protected characteristics, like ethnicity, race and sex.

Employers must provide a Summary of Results of a current bias audit conducted within the last year published on their website or the website of the Employment agency before using the tool with candidates or employees beginning 15th April 2023. The Summary of Results will be provided as part of the bias audit package by Holistic AI and will include the required source and explanation of the data used for the bias audit, the selection rates and impact ratios, and the distribution date of the AEDT.

Candidates and employees must be informed that an automated decision tool is being used to assess them at least ten working days before the tool is used. This includes the characteristics that are being used to make judgments, the source and type of data used, and the AEDT data retention policy.

Employers must provide instructions for how candidates and employees can request accommodation or an alternative selection process under other laws and must provide instructions on how to do so in the notice. Employers are not required to comply with requests under Local Law 144.

This can be met by providing notice on the employment section of the website (for candidates), in a written policy (for employees), in a job posting, or via mail or email.

Employers should also provide instructions on how to make a written request for such information and must respond within 30 days. An explanation must be given if providing this information would violate local, state, or federal law or interfere with a law enforcement investigation. Holistic AI will assist in drafting the notification to employees and candidates.

Provide information on the employment section of its website in a clear and conspicuous manner about its AEDT data retention policy, the type of data collected for the AEDT, and the source of the data; (2) Post instructions on the employment section of its website in a clear and conspicuous manner for how to make a written request for such information, and if a written request is received, provide such information within 30 days; or. (3) Provide an explanation to a candidate for employment or employee being considered for promotion why disclosure of such information would violate local, state, or federal law, or interfere with a law enforcement investigation.

Up to $500 for the first violation and each additional violation occurring on the same day. Subsequent violations incur penalties of $500-$1,500 per violation per day.