Section 1 - Description
Section 2 - Scope
Section 3 - Requirements
Section 4 - Penalties
Section 5 - Status
The bill would require employers and employment agencies in the state of New York to conduct annual bias audits. While not identical to NYC LL144, this bill still requires annual bias assessments of AI systems used in hiring.
The bill defines an automated employment decision tool (AEDT) as “any system used to filter employment candidates” in an automated fashion, “without assessments by individual decision-makers”. While this definition captures systems that filter candidates, the authors imply that any system that assists decision-making is in scope as well.
The scope is slightly stricter than NYC LL144 in that it only considers cases of employment where NYC’s law considers promotions as well.
Employers who use an AEDT must procure an annual “disparate impact analysis” that considers the extent to which the AEDT could cause adverse impacts on the basis of sex, race/ethnicity, or any other protected class listed in New York Executive Law. The analysis must follow the guidelines laid out by the Equal Employment Opportunity Commission (EEOC), which finds adverse impact when the selection rate for one race, sex, or ethnic group is less than 80% of another group.
Such audits must be conducted before use and annually thereafter. The audits must also be conducted by an impartial party.
Unlike NYC LL144, this bill does not require a notice to candidates of the use of an AEDT (NY A07859, introduced July 7th, does however.) The bill also does not require the full details of the audit results to be made publicly available – only a summary is required (but it is not stated what details are expected in the summary.)
The bill does not lay out penalties for non-compliance but notes that the attorney general or the commissioner may investigate suspected cases of discrimination based on the outcomes of the disparate impact assessments.
The bill has not passed yet. Once passed, it would take effect immediately.