NYC Local Law 144 (AEDT Bias Audit)
NYC Local Law 144 requires employers and employment agencies using automated employment decision tools (AEDTs) to conduct annual independent bias audits and make results publicly available. It is the first law in the US to mandate bias audits of AI hiring tools.
Penalties for Non-Compliance
- $500 fine for the first violation
- $500-$1,500 for each subsequent violation
- Each day of non-compliant AEDT use is a separate violation
- Violations are enforced by the NYC Department of Consumer and Worker Protection
- Private lawsuits are possible under NYC Human Rights Law
Key Requirements
Conduct an independent bias audit within one year of AEDT use
Publish audit results on employer website
Notify candidates that an AEDT is being used
Provide candidates information about the AEDT's job qualifications and characteristics
Allow candidates to request an alternative selection process
Post a data retention policy
Audit must calculate impact ratios for race/ethnicity and sex categories
Step-by-Step Compliance Checklist
Identify all AEDTs used in hiring or promotion decisions
Engage an independent auditor (like OnHirely) to conduct the bias audit
Collect or provide candidate demographic data for analysis
Review audit results and remediate any identified bias
Publish summary of audit results on your website
Update candidate notice and consent processes
Establish annual re-audit schedule
How OnHirely Helps You Comply with NYC LL144
OnHirely automates the most complex parts of NYC LL144 compliance. Upload your hiring data and get a comprehensive bias audit report that meets all regulatory requirements — in minutes, not months.
Related Regulations
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