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

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    New York City has recently elaborated on the rules and regulations surrounding the use of Automated Employment Decision Tools (AEDT), also called as NYC 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 now need to 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 that as a recruiter or hiring manager or HR leader, what does this law mean to me and what do I or my company needs to do? Don’t be overwhelmed, we have tried to break it down for you.


    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 states (Summary of the NYC AEDT Law)?


    • Companies must perform bias audits of their AEDTs to assess their impact on selection rates 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 the use of 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.

    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 summary of 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.



    The New York City AEDT law aims to promote transparency and fairness in AI-powered hiring processes. HR professionals can ensure compliance by using the checklist provided and seeking expert guidance when needed. By taking appropriate actions, companies can mitigate bias and create a more inclusive and equitable hiring environment.

    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 practical information about the law and expectations from them. This is not a legal advice and readers are advised to refer to a legal expert for accurate interpretation and compliance of the law]

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