The NYC Department of Consumer and Worker Protection has issued a FAQ regarding NYC Local Law 144, which regulates the use of automated decision making tools (AEDT).

Here are some key things to note:

Use of an AEDT “in the city” means:

  • The job location is an office in NYC, at least part time, or
  • The job is fully remote but the location associated with it is an office in NYC, or
  • The location of the employment agency using the AEDT is in NYC

Employment Decision:

  • Using an AEDT to substantially help assess or screen candidates at any point in the hiring or promotion process
  • NOT: Assessing someone who is being considered for promotion and who has not applied for a specific position for employment
  • NOT: Scanning a resume bank of potential candidates and inviting applications using an automated tool

Bias Audit:

  • The responsibility for the bias audit is on the employer, but the vendor can provide the bias audit in order to facilitate the employer’s compliance with the obligation (and thus paving the way for the AEDT to be onboarded)
  • At a minimum, an independent auditor’s evaluation must include calculations of selection or scoring rates and the impact ratio across sex categories, race/ethnicity categories and intersectional categories
  • While the AEDT law doesn’t per se require an employer to take any action if the bias audit indicates disparate impact, there are other laws (Federal, State and NYC) that prohibit discrimination
  • The law has no specific requirement about the historical data used for a bias audit. However, the summary of the results of a bias audit must include the source and explanation of the data used to conduct the bias audit. If the historical data was limited in any way, including to a specific region or time period, the audit should explain why
  • If an employer does not collect demographic data from applicants or if the employer has minimal historical data from the use of an AEDT, test data can be used to conduct a statistically significant bias audit
  • You CANNOT impute demographic information to applicants or use algorithmic software to infer it


  • Employers must notify employees and job candidates who are residents of New York City that they are using an AEDT, as well as the job qualifications or characteristics the AEDT will assess.
  • Employers must Include in the notice instructions to request a reasonable accommodation under other laws AND provide the notice 10 business days before using an AEDT.
  • Provide the notice in a job posting or by mail or email; for candidates, this can be in the employment section of the website; for employees – this can be part of a written policy and procedure.