NYC Local Law 144
Hiring AI Compliance Guide
The first law in the US requiring bias audits for AI hiring tools. If you hire in NYC, this applies to you now.
What is an AEDT?
An Automated Employment Decision Tool (AEDT) is any AI/algorithm that scores, ranks, or recommends candidates for hiring or promotion.
IS an AEDT (Covered)
- Resume screening software that scores candidates
- Video interview AI that analyzes speech/expressions
- Personality tests that recommend candidates
- Skills assessments that rank applicants
- Chatbot screeners that filter candidates
NOT an AEDT (Exempt)
- ✗ATS that only organizes applications (no scoring)
- ✗Calendaring tools for interview scheduling
- ✗Spell-checkers and basic databases
Three Core Requirements
Every employer using an AEDT in NYC must do these three things:
Annual Bias Audit
Your AEDT must be audited by an independent auditor within the last 12 months
Test for disparate impact on sex and race/ethnicity categories per EEOC guidelines
Public Disclosure
Publish audit results on your website where anyone can see them
Include selection rates, impact ratios, data sources, and auditor information
Candidate Notice
Notify candidates at least 10 business days before using the AEDT
Explain what AI is used, what it assesses, and offer alternative process
What the Bias Audit Tests
The audit must test for disparate impact on these EEOC categories:
The Four-Fifths Rule
If any group's selection rate is less than 80% of the highest group's rate, it may indicate discrimination. You can still use the tool, but you must publish these results.
Penalties for Non-Compliance
| Violation | Penalty |
|---|---|
| First violation | $500 |
| Each subsequent violation (same day) | $500-$1,500 |
| Each subsequent violation (different day) | $500-$1,500 |
Each use of a non-compliant AEDT on a candidate is a separate violation.
NYC LL144 vs Other AI Laws
See how NYC compares to other AI regulations
| Feature | NYC LL144 | Colorado AI Act | Illinois Video Act |
|---|---|---|---|
| Scope | Hiring & promotion AI | All high-risk AI | Video interviews only |
| Effective Date | ✅ July 5, 2023 | June 30, 2026 | ✅ Jan 1, 2020 |
| Bias Audit | ✅ Annual required | ✅ Impact assessment | ❌ Not required |
| Candidate Notice | ✅ 10 days before | ✅ Before decision | ✅ Before interview |
| Max Penalty | $1,500/violation | $20,000/violation | $5,000/violation |
| Jurisdiction | NYC only | Colorado only | Illinois only |
Complete Compliance Resources
Everything you need to achieve and maintain NYC LL144 compliance
Employer Requirements
Complete guide to employer duties, common mistakes, and compliance checklist
Read Guide →Bias Audit Guide
Technical requirements, costs, independent auditor selection, and audit process
Read Guide →Penalties & Enforcement
$500-$1,500 per violation, enforcement realities, and compliance strategies
Read Guide →Vendor Requirements
Questions to ask AEDT vendors and compliance strategies
Read Guide →Exemptions Guide
Who's exempt from LL144 requirements and loopholes
Read Guide →Implementation Timeline
Key dates, milestones, and enforcement start
Read Guide →Required Documentation
8 required documents with downloadable templates
Read Guide →Compliance Checklist
Interactive 18-task checklist with priority indicators
Read Guide →Frequently Asked Questions
What is NYC Local Law 144?
NYC Local Law 144 is a law requiring employers and employment agencies in New York City to conduct annual bias audits of automated employment decision tools (AEDTs) used for hiring or promotion. The law took effect July 5, 2023, and requires public disclosure of audit results and candidate notification.
What is an AEDT?
An Automated Employment Decision Tool (AEDT) is any AI or algorithm that scores, ranks, or recommends candidates for hiring or promotion. Examples include resume screening software, video interview AI, and skills assessment tools. Basic applicant tracking systems (ATS) that only organize applications are not AEDTs.
How much does a bias audit cost?
NYC Local Law 144 bias audits typically cost between $5,000 and $25,000, depending on the complexity of the AEDT, the amount of data, and the auditor. Some vendors include audits in their service, while others require separate auditor engagement.
What are the penalties for violating NYC LL144?
First violation: $500. Subsequent violations: $500-$1,500 per violation. Each use of a non-compliant AEDT on a candidate counts as a separate violation, so penalties can add up quickly for high-volume hiring.
How is NYC LL144 different from Colorado AI Act?
NYC LL144 only applies to hiring and promotion AI tools, while Colorado AI Act covers all high-risk AI systems. NYC's law is already enforced (since July 2023), while Colorado takes effect in 2026. NYC has lower penalties ($1,500 vs $20,000) but requires independent auditors, which Colorado doesn't mandate.
Are You Compliant with NYC LL144?
Use our AI Inventory tool to check if your hiring tools need a bias audit and get a compliance checklist.