Definition · Plain-language
NYC Local Law 144
NYC Local Law 144 is a New York City law requiring bias audits of automated employment decision tools (AEDTs) and notice to candidates, with enforcement from July 2023.
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What Local Law 144 regulates
Local Law 144 governs the use of automated employment decision tools — software that uses machine learning, statistical modelling, data analytics or artificial intelligence to substantially assist or replace discretionary decision-making in hiring or promotion. The law applies to employers and employment agencies using such a tool to screen candidates or employees for positions in New York City. Rather than banning these tools, it imposes transparency and testing requirements designed to surface and disclose potential bias before the tools influence employment outcomes.
The bias-audit requirement
Before using an AEDT, a covered employer must ensure the tool has undergone an independent bias audit conducted by an impartial auditor within the previous year. The audit examines the tool’s impact across sex, race or ethnicity categories, calculating measures such as selection or scoring rates and impact ratios. A summary of the most recent audit results, together with the distribution date of the tool, must be made publicly available, typically on the employer’s website. The audit must be conducted by an auditor independent of the tool and its vendor.
Candidate notice and enforcement
Local Law 144 also requires that candidates and employees who reside in New York City be notified that an AEDT will be used, generally at least ten business days in advance, along with information about the job qualifications and characteristics the tool assesses. The notice must allow individuals to request an alternative selection process or accommodation. Enforcement of the law began on 5 July 2023, after the rules were finalised, and is overseen by the New York City Department of Consumer and Worker Protection.
Key facts
At a glance
- Definition: NYC law regulating automated employment decision tools (AEDTs).
- Short name: Local Law 144 of 2021 (LL144).
- Core duty: Independent bias audit within the prior year.
- Disclosure: Publish a summary of audit results.
- Notice: Inform candidates an AEDT is used, generally 10 business days ahead.
- Enforcement from: 5 July 2023.
Common misconceptions
What people often get wrong
Often heard: NYC Local Law 144 bans the use of AI in hiring.
Actually: The law does not ban AEDTs. It permits their use subject to conditions — an independent bias audit, public disclosure of results, and notice to candidates — rather than prohibiting AI-assisted hiring outright.
Often heard: An employer can perform its own internal bias audit to comply.
Actually: The bias audit must be conducted by an independent, impartial auditor that is not the employer or the tool’s vendor and has no financial conflict of interest in the tool.
Often heard: Local Law 144 applies to all automated tools an employer uses.
Actually: It applies specifically to automated employment decision tools that substantially assist or replace discretionary decision-making in hiring or promotion for positions in New York City.
Going deeper
