Regulatory Compliance

NYC Local Law 144 Compliance Checklist

Complete step-by-step checklist to achieve compliance with NYC Local Law 144 for automated employment decision tools (AEDTs).

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Identify all AEDTs used in hiring and promotion processescritical

Document every automated tool that substantially assists or replaces human decision-making in screening, scoring, or selecting candidates.

Engage an independent auditor to conduct the bias auditcritical

The auditor must be independent of the AEDT developer and employer. OnHirely provides independent bias audit capabilities.

Collect at least one year of historical candidate datacritical

Include selection rates by race/ethnicity and sex for each AEDT. If historical data is unavailable, use test data.

Run 4/5ths rule analysis on selection ratescritical

Calculate impact ratios for each demographic group at each hiring stage. Any ratio below 0.8 indicates adverse impact.

Perform statistical significance testinghigh

Use chi-squared test (n>40) or Fisher exact test (n≤40) to determine if disparities are statistically significant.

Generate audit summary reportcritical

Report must include: AEDT description, data source, analysis date, impact ratios, and statistical test results.

Post audit results on company websitecritical

Audit results must be publicly available on the employer's website for at least 6 months before using the AEDT.

Provide notice to candidateshigh

Notify candidates at least 10 business days before use of AEDT, including information about the tool and available alternatives.

Offer alternative selection processhigh

Candidates who request an alternative to AEDT evaluation must be provided with one.

Schedule annual audit renewalmedium

Set a calendar reminder to renew the bias audit before the 1-year expiration. Plan data collection 2 months in advance.

Document AEDT vendor compliance certificationsmedium

Obtain and file compliance documentation from each AEDT vendor, including their own audit results if available.

Train HR team on LL144 requirementsmedium

Ensure all hiring managers and HR staff understand AEDT disclosure requirements and candidate rights.

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