Understanding the NYC AI Bias Law: A Guide for Managers
What is the NYC AI Bias Law?
The New York City AI Bias Law, effective from January 1, 2023, is a groundbreaking piece of legislation that addresses the growing concern over automated employment decision tools (AEDTs) in the hiring process. These tools include algorithms, software, and systems like resume screeners and interview software that significantly influence or replace human decision-making.
Why is it Being Implemented?
The law is being implemented to combat potential biases that AEDTs may harbor against certain groups of people. Despite the efficiency and objectivity these tools promise, there’s a risk they could perpetuate discrimination based on sex, race, or ethnicity. The NYC AI Bias Law aims to ensure fairness and equality in the hiring process by holding these tools to account.
How is it Being Implemented?
To enforce this law, the following measures are being put into place:
Annual Bias Audits: Employers are required to conduct bias audits of their AEDTs annually. These audits must be performed by independent auditors and are designed to assess the potential disparate impact on protected categories such as sex, race, and ethnicity.
Disclosure and Notice: Employers must disclose the date and summary of the most recent bias audit. Additionally, they must provide notice to candidates and employees before using AEDTs in the hiring process.
For Hiring, Not Performance Evaluations
It’s crucial for managers to understand that the NYC AI Bias Law applies strictly to the hiring process. This means that while AEDTs used for evaluating current employees’ performance may still raise concerns, they are not regulated under this specific legislation. Managers should remain vigilant about the tools they use for performance evaluations, ensuring they uphold the same standards of fairness and non-discrimination.
This blog post can serve as a resource for managers to better grasp the NYC AI Bias Law and its exclusive focus on hiring practices. It’s important for managers to stay informed and compliant with such regulations to foster a fair and equitable workplace.
