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New York City delays enforcement of law on artificial intelligence in employment decisions | Hogan Lovells


[co-author: Muhammad S. Burney]

New York City’s new law concerning artificial intelligence in employment decisions will still go into effect on January 1, 2023, but enforcement has been delayed until April 15, 2023. NYC employers subject to the law should take steps to prepare for enforcement, including preparing the necessary postings and confirming that the required audits have been conducted.

New York City has delayed enforcement of Local Law 144 of 2021, codified at N.Y.C. Admin. Code § 20-870 et seq. (Law), the city’s new law concerning artificial intelligence in employment decisions, which we previously wrote about here. While the Law will still go into effect on January 1, 2023, the Department of Consumer and Worker Protection (DCWP) recently posted an update stating that it will delay enforcement until April 15, 2023, due to the high volume of public comments received in response to its proposed rules clarifying the Law.

As a reminder, the Law, once in effect, will require a bias audit to be conducted on an automated employment decision tool prior to the use of that tool. Additionally, the law will require NYC candidates or employees to be notified about the use of such tools in assessment or evaluation for hire or promotion, along with the job qualifications and characteristics that will be used by the tool. But, due to the lack of details provided in the Law and the high volume of public comments received in the initial rule-making proceeding, the DCWP will hold a second public hearing in 2023 and will continue to work on rules and regulations to provide additional clarity to NYC employers who will be subject to the Law.

We will continue to provide updates concerning the Law. In the meantime, NYC employers who are subject to the Law should nevertheless take steps to prepare for the Law’s enforcement, including preparing necessary postings and confirming that the required audits have been conducted.

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