Local Law 144 will require companies to submit an annual bias audit for AI tools designed to weed out job applicants.
the tool could mirror human stereotypes and discriminate against certain candidates“That’s the risk in all of this, that left unchecked, humans sometimes can’t even explain what data points the algorithm is picking up on. That’s what was largely behind this legislation,” John Hausknecht, a professor of human resources at Cornell University’s School of Industrial and Labor Relations, told
. “It’s saying let’s track it, collect data, analyze it, and report it, so over time, we can make changes to the regulations.”According to AEDT, if applicable, a company must provide alternative instructions for an applicant to “request an alternative selection process or a reasonable accommodation under other laws,” although employers are not required to offer an alternative selection process.
“We are only talking about those tools that take the place of humans making decisions,” Camacho Moran an employment attorney at Farrell Fritz told CBS. “If you have an AI tool that runs through 1,000 applications and says, ‘these are the top 20 candidates,’ that is clearly a tool that falls within the definition of an AEDT.”The law may spread to other cities as the draw toward remote hiring becomes increasingly popular for companies, both in New York City and elsewhere.
“First of all, I’m really glad the law is on the books, that there are rules now and we’re going to start enforcing them,” Stoyanovich told the outlet. “But there are also lots of gaps. So, for example, the bias audit is very limited in terms of categories. We don’t look at age-based discrimination, for example, which in hiring is a huge deal, or disabilities.
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