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Employment ComplianceNov 2, 202606:02 (PT)

Three NYC agencies issue joint AI enforcement policy: 'AI made the decision' is not a defense

Key points

  • Three NYC agencies issued a joint AI enforcement policy stating employers answer for outcomes when software helps break the law.
  • Local Law 144, enforced by DCWP, covers automated employment decision tools used to screen candidates or employees, effective January 1, 2023.
  • The report cites penalties of $500 to $1,500 per day; DCWP began enforcement on July 5, 2023.

Three New York City agencies published a joint enforcement policy on artificial intelligence, stating that employers answer for outcomes when software helps break the law, according to shattered.io. Local Law 144, enforced by DCWP, covers automated employment decision tools used to screen candidates or employees and has applied since January 1, 2023. DCWP began enforcement on July 5, 2023. The report cites penalties of $500 to $1,500 per day. For reference only, not legal advice.

What employers should do

  1. Inventory automated screening tools used in NYC hiring and confirm whether they fall under Local Law 144.
  2. Check vendors' bias audits and public postings, and retain related records.

Policy details

Jurisdiction
New York City
Status
Enforcement action
Effective date
2023-01-01
Employers covered
Employers using automated employment decision tools to screen candidates or employees in New York City
Official source
View official source ↗
Original report: shattered.io ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.