The New York City Department of Consumer and Worker Protection (DCWP) updated its website April 6 to announce that enforcement of the impending law regulating the use of automation and artificial intelligence in employment decisions has been postponed for a second time to accommodate the final rule being published today.
"We thank everyone who provided comments about the proposed law during the public hearing process," said Michael Lanza, DCWP press secretary. "The final rule, which seeks to balance the feedback we received, will go into effect on May 6, and DCWP will begin enforcement of the law on July 5, 2023."
Previously the city announced a delay that pushed the original January 1 enforcement date to April 15.
The law has received an outpouring of comments from employers and technology vendors in the months leading up to enforcement. It prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit within one year of the use of the tool, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates. Violations of the provisions of the law would be subject to a civil penalty.
We've rounded up articles from SHRM Online to provide more context on the news.
Groundbreaking Legislation
New York City passed the first-of-its-kind law in 2021 prohibiting employers from using AI and algorithm-based technologies for recruiting, hiring or promotion without those tools first being audited for bias.
More Clarity Needed
The Society for Human Resource Management (SHRM) recently asked the city's regulatory agency for further guidance on the law, specifically around the exact definition of "automated employment decision tool" and the provisions related to conducting bias audits.
HR Must Be Vigilant
Employers must be aware of the ethical considerations of using artificial intelligence technology—even in its current nascent stage—in the workplace. HR and business leaders are being drawn into the conflict between the competitive advantage the technology can provide and concerns about negative implications like unintended bias.
EEOC to Focus on AI in Hiring
The U.S. Equal Employment Opportunity Commission (EEOC) announced an initiative last year to ensure that AI and other emerging technologies used in hiring and other employment decisions comply with federal anti-discrimination laws.
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