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Home > Blogs > Blogs > Understanding New York City’s Automated Employment Decision Tools (AEDT) Law

Understanding New York City’s Automated Employment Decision Tools (AEDT) Law

  • By Manav Jain
  • April 18, 2024
  • 3 mins read
Summary of everything you need to know about the new AI law in New York city's AEDT law.
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    Introduction

    New York City has recently elaborated on the rules and regulations surrounding using Automated Employment Decision Tools (AEDT), also called New York City AI law, in the hiring process. The purpose of this law is to address bias that may arise from using AI in employment decisions. Companies must take specific actions to comply with these regulations and ensure fairness and accountability in their AI-powered hiring processes.

    You can read the latest copy here.

    This article will help you understand what, as a hiring manager or HR leader, New York City AI law means and what I or my company need to do. Don’t be overwhelmed; we have tried to break it down for you.

    Disclaimer

    It is important to remember that each organization’s technology, processes, and circumstances may vary. For accurate and specific compliance information, it is recommended to consult legal experts and AI professionals.

    What does the NYC AEDT law state (Summary of the NYC AEDT Law)?

    • Companies must perform bias audits of their AEDTs to assess their impact on selection and scoring rates across various categories.
    • The results of the bias audits, along with other required information, must be made publicly available.
    • Employers and employment agencies must provide notices to candidates and employees, informing them about using AEDTs and their rights.
    • AEDTs must be audited annually, using historical or test data if necessary.
    • HR professionals should implement responsible AI practices and continuously monitor and improve the use of AEDTs.

    Also Read: Explained: What Are Game Based Assessments?

    Compliance Checklist

    To ensure compliance with the New York City AEDT law, you need to take the following actions:

    Action Items Specifics What do I need to do?
    1. Review and Assessment
    • Identify AEDTs used in the hiring process.
    • Identify all AEDTs currently in use.
    • Determine the extent of AEDTs’ impact on decision-making.
    • Understand the applicability of the law to your organization.
    2. Bias Audit
    • Calculate selection rates and impact ratios.
    • Analyze selection rates by race/ethnicity.
    • For more information refer here.
    • Include all relevant categories in the audit.
    • Determine impact ratios for sex categories.
    • For more information refer here.
    • Provide justifications for excluding categories with less than 2% of data.
    • Exclude categories with insufficient data.
    • Indicate the number of individuals in unknown categories.
    3. Data Requirements
    • Use historical or test data for bias audits.
    • Determine the availability of historical data.
    • Understand your organization’s data retention policy.
    4. Published Results
    • Make bias audit results easily accessible on your company’s website.
    • Share the audit results on the HR portal.
    • Include the date of the most recent bias audit and a summary of the results.
    • Provide clear explanations of the audit findings.
    5. Notice to Candidates and Employees
    • Provide clear and conspicuous notice regarding the use of AEDTs.
    • Include information on alternative selection processes.
    • Explain the rights of candidates and employees.
    • Clearly state the process for requesting accommodations.
    6. Responsible AI Practices
    • Incorporate ethical considerations into AEDT design and development.
    • Conduct regular reviews of the AEDT algorithms.
    • Follow established frameworks and guidelines for responsible AI practices.
    7. Ongoing Learning
    • Stay informed about advancements in AI and responsible AI practices.
    • Attend AI ethics workshops and conferences.
    • Engage in professional development opportunities.

    Conclusion

    The New York City AEDT law promotes transparency and fairness in AI-powered hiring processes. HR professionals can ensure compliance by using the checklist and seeking expert guidance. Companies can mitigate bias and create a more inclusive and equitable hiring environment by taking appropriate actions.

    Read more about BarRaiser’s view on AI in hiring tools and if BarRaiser comes under the purview of the AEDT law.

    [The article is intended to provide readers with practical information about the law and expectations from them. This is not legal advice, and readers are advised to refer to a legal expert for accurate interpretation and compliance with the law]

    Also Read: Important Recruitment Metrics You Must Track In 2023

    FAQs

    Why was the New York City AI law introduced in hiring processes?

    The New York City AI law addresses bias in AI-powered employment decisions, promoting fairness and accountability in hiring.

    What are the critical requirements of the New York City AI law for companies?

    Companies must conduct bias audits, publicize results, provide notices about AEDT usage, perform annual audits, and implement responsible AI practices.

    What does the Compliance Checklist for the New York City AI law include?

    The checklist outlines actions for compliance, including reviewing AEDTs, conducting bias audits, addressing data requirements, publishing results, providing notices, implementing responsible AI, and fostering ongoing learning.

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