The New York City law that went into effect on January 1 and will be enforced beginning July 5 requires companies to disclose their use of artificial intelligence (AI) hiring tools and share the results of bias audits related to these tools.
This law, the first of its kind in the United States, aims to address potential biases based on race/ethnicity and sex in AI-based hiring processes. Under this law, independent auditors will conduct tests on AI tools used for screening job applicants. These audits will assess whether these tools exhibit any biases that could discriminate against certain racial or ethnic groups or genders. Employers are then obligated to publish information on their websites regarding their use of AI tools for hiring and promotion decisions, as well as the results of independent bias audits conducted within the previous 12 months.
To ensure transparency, candidates and employees residing in New York City must be informed in advance if AI tools will be used in their hiring or employment processes. Additionally, applicants have the right to request alternative selection processes or accommodations if they feel that AI tools may not be suitable for their situation.
While existing legislation already protects applicants against unlawful discrimination, this new law in New York City goes further by making bias audits public, notifying candidates about the use of AI, and providing them with alternatives if needed. The introduction of this law is likely to have a broader impact, serving as a catalyst for similar legislation at the national level and in other states and cities, addressing the use of AI tools in hiring processes.
The attorneys at Outside Legal Counsel LLP have extensive experience in all facets of employment law and can assist employers in formulating policies and procedures that are in compliance with this law.
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