What NYC Job Seekers Should Know About Algorithm Bias Audits (Local Law 144)

New York City’s Local Law 144 requires employers using AI or automated employment decision tools (AEDTs) for hiring or promotions to conduct independent bias audits, disclose audit summaries publicly, and notify job applicants before such tools are used. These protections aim to increase transparency and reduce discriminatory outcomes in hiring.

What do you need to know about these systems and how they affect you?

Employers increasingly use automated or artificial intelligence (AI) systems to sort resumes, screen candidates, and even score video interviews. In New York City, lawmakers recognized that technology can silently discriminate if left unchecked, so they took action.

Local Law 144

In 2021, the City Council passed Local Law 144, the first law in the U.S. to address bias in automated hiring tools.

If you’re searching for a job in NYC, there are tools in place that protect candidates and employees.

Local Law 144 applies to automated employment decision tools (AEDTs) used by employers or employment agencies when making hiring or promotion decisions. An AEDT is broadly defined as any algorithm, machine learning model, statistical tool, or AI system that scores, ranks, or recommends candidates to assist or replace human decision-making.

If an employer uses technology to help screen applications or assess candidates’ suitability for a job, that technology falls under the law’s requirements.

Employers Must Conduct Annual Independent “Bias Audits”

Under Local Law 144, before an AEDT can be used for hiring, the employer must ensure the tool has been subject to a bias audit. The audit must be conducted by an independent third party within the past 12 months. It looks at whether the tool’s outcomes differ across groups, particularly based on race, ethnicity, and sex, and calculates metrics such as selection rates and impact ratios.

The independent audit must test for disparate impact on protected groups. A thorough audit will reveal whether the tool may disadvantage candidates because of their demographic characteristics.

Employers Must Publish Audit Summaries Publicly

One of the core transparency requirements of Local Law 144 is that employers using AEDTs must post a summary of the most recent bias audit on their careers or jobs page, in a manner that’s clear and accessible to the public. This summary should include key information such as:

• Date of the bias audit
• Statistical results showing how different groups were affected
• How the AEDT was used

Employers are legally required to make this information readily available online.

You Must Be Notified Before the Tool Is Used

Employers must also give advance written notice to applicants (and employees) before an AEDT is actually used to evaluate them. The notice must disclose:

• That an AEDT will be used in your evaluation
• What job qualifications or characteristics the tool assesses
• How the tool will collect and use candidate data

Your right to request an alternative selection process or reasonable accommodation

There Are Penalties for Non-Compliance

If an employer uses an AEDT without meeting the law’s requirements, the city can impose civil penalties. These range from several hundred to over a thousand dollars per violation per day.

Each day a non-compliant tool is used can count as a separate violation, which means fines can add up quickly.

What This Means for You as a Job Seeker

In practice, Local Law 144 aims to give you greater visibility into whether automated technology may be influencing hiring decisions and whether those tools have been examined for fairness. If an employer is using algorithmic screening, you:

• Should see a notice about it before it’s used
• Should be able to find audit results online
• Have the right to ask for an alternative process if the tool will disadvantage you

While the law doesn’t guarantee the absence of bias, it does create a legal pathway to transparency and accountability that didn’t exist before. If you suspect a company is not complying, you may consider reporting it to the NYC Department of Consumer and Worker Protection or seeking legal advice.

As a job seeker in NYC, knowing your rights under this law helps you. You can recognize when automated tools are affecting your opportunities, and what protections are supposed to be in place.

For more information or to schedule a consultation to discuss your situation, contact Borrelli & Associates, P.L.L.C.