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Employers in New York City might get new regulations that define how they may use automated tools to help determine which job applicants they will consider.

What NYC Is Considering

The New York City Department of Consumer and Worker Protection (DCWP) hopes to establish requirements that employers must follow when using Automated Employment Decision Tools (AEDTs). Their proposal includes:

• Defining and limiting the scope of the "substantially assist or replace" standard for the applicability of AEDTs. This would clarify that AEDTs are covered by law when they are used to help make employment decisions.
• Clarifying the definition of a candidate to say that it is an individual who applied for a specific position and provided any information necessary to complete that process, such as a resume or job application.
• Adding more information about structure and content of the bias audit. This includes requirements for employers to calculate the selection rate of their AI tool based on gender, ethnicity and race.
• Requiring employers to have ample content in the audit summary that they publish.
• Providing additional methods for compliance with the notice requirement. Acceptable options could include email, mail or a mention on their career page or job listings.

Learn more.

Existing Law Would Be Updated

These proposed regulations would update existing legislation known as Local Law 144 of 2021. This law was thought to lack clarity for several key topics.

The next step is a public hearing which will be held on October 24, 2022. Stakeholders are permitted to submit written comments or ask to speak in person. Once the results of this hearing are considered, legislators will determine how to proceed.

The Hiring Process

There are multiple steps to every employer's hiring process. A few include:

• Creating job postings. Some locations have specific requirements for these, such as including a salary range in the listing.
• Reviewing applications and resumes. Employers in NYC that use Artificial Intelligence to help sort through these resources may have additional requirements to follow in the future.
• Conducting interviews.
• Running background checks. It’s worth noting that in New York City, this can be a two-part process. If employers run employment or education verifications or any other non-criminal searches, they must do so before running a criminal background check. They may run a criminal report after extending a conditional offer.
• Onboarding.

Employers should be aware that some cities, counties and states have laws in place regarding one or more of these steps. We recommend consulting with legal counsel to ensure you are in compliance with laws that are in effect wherever you operate.

If You Need Background Checks

If your organization is bringing on employees, contractors or volunteers, please contact us. Our team keeps up with relevant laws and can help you customize screening packages for your specific needs, industry requirements and applicable laws. For example, if you hire people who live or work in New York City, we can work with you to create packages that are used before and after you extend a conditional offer.

We are based in the United States and available to assist you Monday through Friday from 5am to 6pm PT.