NYC Local Law 144

NYC Local Law 144 is New York City's law requiring employers and employment agencies to conduct an annual bias audit of any automated employment decision tool used to screen candidates or employees for jobs based in the city, and to publish the results before using the tool. Enforcement began July 5, 2023, making it the first operative AEDT law in the US.

Who Does Local Law 144 Cover?

The law applies to any employer or employment agency using an AEDT to make hiring or promotion decisions for a position located in New York City — including remote roles based there. It doesn't matter where the employer's headquarters sit; what matters is where the affected job is based, per the official NYC guidance.

What Does the Bias Audit Require?

An independent auditor must calculate selection or scoring rates by race/ethnicity and sex category and publish the results, including the impact ratio, on the employer's or a public website. The audit must be dated within one year before the AEDT is used, meaning it's a recurring, not one-time, obligation.

What Notice Must Candidates Receive?

Employers must notify candidates and employees at least 10 business days before an AEDT is used to evaluate them, disclosing what the tool assesses and providing a way to request an alternative process or accommodation. This notice requirement runs independently of the audit requirement — an employer can have a valid audit on file and still violate the law by skipping candidate notice.

What Are the Penalties for Non-Compliance?

Violations are enforced by the NYC Department of Consumer and Worker Protection, and each unlawful use of an AEDT — as well as each failure to provide required notice — can be treated as a separate violation, meaning penalties compound quickly across a hiring pipeline rather than applying once per employer.

How Does Local Law 144 Compare to Other State Laws?

Local Law 144 only covers audits and notice; it doesn't regulate the AI tool's design the way the EU AI Act's high-risk framework does, and it's narrower than Illinois's amended Human Rights Act, which addresses broader AI-driven discrimination in employment beyond just AEDTs. Employers operating nationally increasingly design one compliance process that satisfies Local Law 144's specifics while covering the more general obligations emerging elsewhere.

How Should Employers Operationalize Compliance?

Compliance requires three synchronized calendars: audit renewal dates, notice timing before each use, and public posting of results. AI HR compliance software that tracks jurisdiction-specific deadlines reduces the risk of a lapsed audit slipping through during a busy hiring season.

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Frequently Asked Questions

Q: Does Local Law 144 apply to remote workers outside NYC?
A: It applies based on where the job is located, so a remote position based in NYC is covered even if the candidate lives elsewhere.

Q: How long is a bias audit valid under Local Law 144?
A: One year — the audit must be dated within 12 months of the AEDT's use, so it's a recurring annual requirement.

Q: Can an employer use an AEDT without publishing audit results?
A: No, publishing a summary of results is a separate, mandatory requirement independent of simply having conducted the audit.

Q: What counts as sufficient candidate notice?
A: Notice must be given at least 10 business days before the tool is used, disclosing what characteristics or skills it assesses.

Q: Is a resume-parsing tool automatically covered?
A: Only if it substantially assists a hiring decision through scoring or classification, not if it simply extracts and organizes text.

Q: Does Local Law 144 preempt other state AI employment laws?
A: No, it's a NYC-specific ordinance; employers with multi-state operations must separately track requirements like Illinois's and Colorado's laws.