As previously discussed in our past article and publication, New York City’s Local Law 144 was set to go into effect on January 1, 2023. However, agency enforcement is now postponed until April 14, 2023.
Responding to increased public and governmental scrutiny of the use of artificial intelligence, machine learning, and other technologies, New York City enacted Local Law 144.
- Local Law 144 regulates NYC employers’ use of automated employment decision tools (AEDT) in hiring and employment-related processes, and intended to protect employees and job candidates from potential biases and discriminatory effects that may result from the use such tools.
Given the broad scope of the law’s terms and lack of clarity as to its various requirements, preparing to comply with the law by its original effective date, January 1, 2023, has been a leading concern of employers since the law was enacted in 2021.
After several months of waiting for regulatory guidance on this issue, on September 23, 2022, the New York Department of Consumer and Worker Protection’s (DCWP) published its proposed rules for the interpretation and application of Local Law 144. A public hearing for comments on the proposed rules was initially scheduled for October 24, 2022.
Public interest for the hearing was much larger than the DCWP anticipated, and it was rescheduled for November 4, 2022. The virtual hearing featured over 270 attendees and included live oral comments from more than a dozen participants.
Due to the high volume of comments requesting clarification and guidance regarding the proposed regulations, especially those concerning key compliance issues, on December 12, 2022, the DCWP announced that it will hold a second public hearing on January 23, 2023, and is postponing enforcement of the law until April 15, 2023.
This is welcome news for employers and employment agencies that hire or promote candidates within New York City with the assistance of AEDT – which based on the law’s definitions, arguably extends well beyond what many would consider an “automated” technology, underscoring the importance of clearer regulatory guidance.