Overview of NYC Local Law 144
NYC Local Law 144, effective July 5, 2023, requires employers and employment agencies using automated employment decision tools (AEDTs) in New York City to conduct annual independent bias audits and publish the results.
Who Must Comply?
Any employer or employment agency that uses an AEDT to screen candidates or employees for employment or promotion decisions within New York City. This applies regardless of company size or industry.
Key Requirements
1. Independent Bias Audit
You must engage an independent auditor to evaluate your AEDT for bias. The audit must be completed within one year before the AEDT is used.
2. Publication of Results
A summary of the most recent bias audit results must be publicly available on your website. This includes impact ratios for race/ethnicity and sex categories.
3. Candidate Notice
You must notify candidates at least 10 business days before using an AEDT. The notice must include:
- That an AEDT will be used
- The job qualifications and characteristics the AEDT assesses
- Information about the data collected and data retention policy
4. Alternative Process
Candidates may request an alternative selection process or accommodation.
Penalties for Non-Compliance
- First violation: $500 fine
- Subsequent violations: $500-$1,500 each
- Each day of non-compliant use is a separate violation
- Enforcement by NYC DCWP
Step-by-Step Compliance Checklist
- Inventory all AEDTs used in hiring or promotion
- Engage an independent auditor like OnHirely
- Provide historical hiring data for analysis
- Review audit results and remediate any bias
- Publish audit summary on your website
- Update candidate notice and consent processes
- Create data retention policy
- Schedule annual re-audit
How OnHirely Helps
OnHirely provides NYC Local Law 144-compliant bias audits in minutes. Upload your hiring data, and we automatically calculate impact ratios, run statistical significance tests, and generate a publication-ready audit report.