Get Compliant with NYC Local Law 144

We provide a complete compliance solution to Local Law 144, to get your company compliant in time for the July 5th deadline.

We have the expertise and tools to guide you through the whole compliance process, including determining if you need to comply, preparing your data, performing a bias audit, reviewing and publishing the audit results, and notifying the necessary people.

We are NYC-based and can meet in person or virtually. Schedule a meeting or send us an email to learn more about how we can get you to compliance.

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What is NYC Local Law 144?

Local Law 144, also known as the AEDT Law, is New York City’s new law to help eliminate bias in the use of “automated employment decision tools” (AEDTs). AEDTs are tools that use algorithms or AI to assist in making hiring and promotional decisions. These are typically software applications built to simplify the hiring process by assigning scores and rankings to candidates.

If your company uses an AEDT as part of its hiring process in New York City, it is subject to Local Law 144. To comply, your company needs to undergo a third-party audit for each AEDT it uses, and the audit results need to be posted on a public website. Enforcement starts July 5th, 2023.

An example AEDT screenshot

An example screen of an AEDT

NYC Local Law 144 FAQs

We aren't NYC-based but we do hire people there, do we need to comply?

Yes, local law 144 applies to companies that hire employees (remote or otherwise) who live in NYC. So if you hire anyone who resides in NYC, you may need to comply to NYC Local Law 144.

What is the penalty for non-compliance?

The fine for non-compliance is up to $1,500 per day per tool that is not audited. If a company uses four such tools, it will be fined $6,000 each day until compliance is achieved.

When does the law take effect?

The law is currently in effect, and enforcement of the law starts July 5th, 2023. This means all companies who are in breach of compliance will be liable to be fined starting on that date.

Other than fines, is there anything else to worry about if we don't comply?

Yes, if you are non-compliant, your company may be opened up to discriminatory hiring lawsuits. These have the potential to be much more costly than fines and carry added reputational risk.

How do we know if our hiring tools require an audit?

Any tool that uses AI and is being used to simplify any part of the hiring process is subject to NYC Local Law 144. There is often some confusion, even by vendors, around the classification of an AEDT under NYC Local Law 144.

If you are unsure if any of the specific tools your company is using apply, please reach out via email or schedule a meeting using the buttons above, and we can help you make a determination.

What happens if an audit is failed?

As per the law, the audit must be performed and the results must be published. This is the requirement to reach compliance, there is no notion of a 'failed' audit.

Is the audit a one time thing?

An independent audit must be performed on an annual basis. For audits conducted by us, we will manage scheduling subsequent audits as they are required.

Can't the provider of the AEDT just get audited?

No, the law states that the company using the AEDT needs to get an independent bias audit. An audit of the AEDT vendor doesn't cover the company who uses the tool.

NYC Local Law 144

Our Compliance Process

Our multi-step compliance process is designed to get you compliant with NYC Local Law 144 as quickly as possible.

1

Hiring Tools Assessment

We work with your HR team to enumerate your hiring tools and identify if any of them are subject to NYC Local Law 144. Here we determine if you do in fact need to comply.

2

Secure Data Handoff

We request the specific data needed and facilitate a secure data handoff to enable the bias audit.

3

Bias Audit

Using your data, we conduct a bias audit as dictated by Local Law 144. We discuss results with you and discuss potential solutions to any areas of concern, should they arise.

4

Publishing and Disclosing Results

We host a small webpage publishing the results of the audit, and give you instructions for linking to this page. See an example of a hosted audit here.

We also draft a message for notifying employees and candidates about your compliance, and give instructions on how to issue this notification.

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