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NYC Automated Employment Decision Tools Law

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Maximum Fine
$1,500 per violation
Scope
New York City
Regulator
NYC Department of Consumer and Worker Protection
Effective Date
July 5, 2023

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Regulation of automated decision systems in employment decisions

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Overview

The NYC Automated Employment Decision Tools (AEDT) Law regulates the use of automated decision systems in employment decisions, requiring bias audits, notices, and transparency measures.

Key Facts

  • Annual bias audits required
  • Candidate notification obligations
  • 10-day advance notice requirement
  • Alternative selection process required
  • Public posting of audit results

Key Principles

Bias Audit Requirements

Mandatory annual bias audits of automated decision tools

Requirements

  • Independent bias audit
  • Impact ratio analysis
  • Protected category assessment
  • Results publication
  • Annual renewal

Examples

  • Statistical analysis reports
  • Demographic impact studies
  • Audit methodology documentation
  • Results publication format
  • Compliance documentation

Transparency Requirements

Obligations for clear communication about AEDT use

Requirements

  • 10-day advance notice
  • Tool description
  • Evaluation criteria
  • Alternative process information
  • Data handling disclosure

Examples

  • Notice templates
  • Process documentation
  • Communication protocols
  • Alternative options
  • Data policies

Candidate Rights

Rights and protections for job candidates

Requirements

  • Alternative assessment option
  • Data access rights
  • Notice requirements
  • Complaint mechanisms
  • Non-discrimination protections

Examples

  • Alternative process documentation
  • Rights notification forms
  • Complaint procedures
  • Protection measures
  • Access request forms

Compliance Requirements

Bias Audit Compliance

Steps for conducting and documenting bias audits

Implementation Steps

  • Select independent auditor
  • Conduct impact analysis
  • Document methodology
  • Publish results
  • Maintain records

Required Documentation

  • Auditor credentials
  • Audit methodology
  • Results summary
  • Publication records
  • Compliance files

Notice Requirements

Procedures for providing required notices

Implementation Steps

  • Prepare notice content
  • Establish delivery method
  • Track timing compliance
  • Document delivery
  • Maintain records

Required Documentation

  • Notice templates
  • Delivery records
  • Timing logs
  • Receipt confirmations
  • Record maintenance

Alternative Process Management

Implementation of alternative selection processes

Implementation Steps

  • Design alternative process
  • Document procedures
  • Train personnel
  • Track usage
  • Evaluate effectiveness

Required Documentation

  • Process descriptions
  • Training materials
  • Usage logs
  • Evaluation reports
  • Effectiveness metrics

Enforcement & Penalties

Administrative Enforcement

Enforcement by NYC Department of Consumer and Worker Protection

Penalty Categories

First Violation
$500
Per day until compliance
Subsequent Violations
$1,500
Per violation
Multiple Violations
Up to $1,500
Per violation per day

Example Cases

Missing Bias Audit
$500-$1,500
2023 - Failure to conduct annual bias audit
Notice Violation
$500-$1,500
2023 - Failure to provide required notice