New York City has enacted LocalLaw 144 to regulate AI in the workplace. It mandates companies to disclosetheir use of AI in hiring and promotions, conduct annual bias audits, andpublicly share the results to promote fairness and transparency in AI-drivenemployment practices. However, according to the Wall Street Journal, complianceremains low, primarily due to a complaint-driven enforcement system anddiscretion when human decision-making is involved.
The prevalence of AI inrecruitment is undeniable, with one in four organizations using AI for HR tasksin 2022 according to The Society for Human Resource Management. Thisunderscores the importance of regulatory compliance. Many employers mayinadvertently use technology or third-party services that require compliance.Non-compliance with Local Law 144 can result in daily penalties of up to $1,500per violation.
For legal assistance innavigating this evolving landscape of employer-employee matters and compliance,consider contacting Outside Legal Counsel LLP, where we specialize inrepresenting both employers and employees to ensure liability avoidance inemployment-related decisions.
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