NYC Automated Employment Decision Tools Law
View Law TextMaximum 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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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