At the Intersection of Technology, Law, and Business
May 03, 2023 - Artificial Intelligence

New York City AI Law: Trials, Tribulations, And Uncertainties

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New York City (NYC) is the first U.S. jurisdiction to pass an expansive law regulating the use of artificial intelligence (AI) in hiring. Local Law 144 of 2021 (LL144) prohibits employers and employment agencies from using an automated employment decision tool (AEDT) to make employment decisions for job candidates in New York City, unless:

  • the tool has been subject to a “bias audit” within one year of using the tool;
  • information about the bias audit is made publicly available; and
  • certain notices are provided to employees or job candidates. 

LL144 is on many stakeholders’ radars, as the law carries some potentially hefty civil penalties, including up to $500 for the first violation and each additional violation occurring on the same day, and a penalty between $500 and $1,500 for each subsequent violation. Each day the AEDT is used in violation of the law constitutes a separate violation.

Due to the outstanding open questions and practical concerns regarding the law’s requirements, the New York City Department of Consumer and Worker Protection (DCWP) postponed enforcing the law until July 2023.

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