Overview
NYC Local Law 144 regulates the use of Automated Employment Decision Tools (AEDTs) in hiring and promotion decisions. It requires annual independent bias audits, public disclosure of audit results, and candidate notifications. Currently enforced with active penalties for non-compliance.
Key Facts
Who This Law Applies To
Geographic Scope
Citation: NYC Admin. Code § 20-870 et seq.
- •Employers with offices in NYC
- •Employment agencies operating in NYC
- •Remote positions IF associated with a NYC office
In Plain English: If you're hiring for a job in NYC, or considering NYC employees for promotion, this law applies to you.
What's Covered
- • Hiring decisions
- • Promotion decisions
- • Resume screening
- • Interview assessments
- • General HR processes
- • Performance reviews
- • Candidate outreach
- • Scheduling tools
Key Definitions
Automated Employment Decision Tool (AEDT)
Legal Definition: "Any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions."
In Plain English: Software that uses AI/algorithms to help make hiring or promotion decisions by giving scores, rankings, or recommendations.
- • Resume screening software
- • Video interview AI
- • Personality test software
- • Skills assessment tools
- • Chatbot screeners
- • Game-based assessments
- • Junk email filters
- • Spell-checkers
- • Spreadsheets/databases
- • Basic ATS systems
- • Calendaring tools
Bias Audit
Legal Definition: "An impartial evaluation by an independent auditor of an automated employment decision tool's disparate impact on persons of any component 1 category required to be reported."
In Plain English: An independent third party tests your AI for bias against different demographic groups (sex and race/ethnicity).
Three Core Requirements
Annual Bias Audit
Citation: NYC Admin. Code § 20-871
- Must be conducted by independent auditor
- Test for bias by sex (male/female)
- Test for bias by race/ethnicity (7 categories)
- Calculate selection rates for each group
- Apply 4/5ths rule to identify disparate impact
- Repeat annually
Public Disclosure
Citation: NYC Admin. Code § 20-872(b)
- Post audit results on publicly accessible website
- Include selection rates by demographic category
- Include impact ratios (4/5ths rule results)
- Include date of audit
- Keep posted for at least 6 months after last use
Candidate Notification
Citation: NYC Admin. Code § 20-872(a)
- Notify candidates at least 10 business days before using AEDT
- Explain what job qualifications the AEDT will assess
- Provide link to audit results
- Offer alternative selection process or reasonable accommodation
Need Help with NYC LL144 Compliance?
Our platform provides automated bias audits, compliance reporting, and ongoing monitoring to ensure your AEDT systems meet NYC requirements.
How to Cite This Guide
This guide is maintained by HAIEC's legal compliance team and updated regularly to reflect the latest DCWP guidance. Last updated: February 2026.