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New York City AI Hiring Law (Local Law 144): Bias-Audit Compliance for Employers
In effect Primary law: NYC AEDT Bias Audit Law (LL 144) · NYC Local Law 144 of 2021; NYC Admin. Code §§ 20-870 to 20-874
If you use an automated tool to screen, rank, or score candidates for jobs based in New York City — an AI resume screener, a scoring algorithm, an automated video assessment — New York City Local Law 144 requires you to have that tool independently bias-audited before you use it, post the results, and notify candidates. In effect since July 5, 2023 and enforced by the NYC Department of Consumer and Worker Protection (DCWP), it is the first US law to mandate a bias audit for AI hiring. On top of it, federal anti-discrimination law applies everywhere.
What the law requires
- Run an independent bias audit within the last year. You may not use an automated employment decision tool (AEDT) to screen NYC candidates or employees unless an independent auditor completed a bias audit — an impact-ratio analysis by race/ethnicity and sex — within the prior 12 months.
- Publish the audit summary. A summary of the most recent bias audit and the distribution date must be publicly posted on your careers/employment section.
- Notify candidates in advance. Give NYC candidates and employees at least 10 business days' notice that an AEDT will be used, what job qualifications/characteristics it assesses, and (on request) the data source and type.
- Honor accommodation/alternative requests. Provide information about requesting an alternative selection process or accommodation.
Who must comply
Employers and employment agencies that use an automated employment decision tool to substantially assist or replace discretionary decision-making when screening candidates or employees for positions located in New York City. The obligation attaches to the NYC job location, not your headquarters — a company anywhere that hires for an NYC role and uses a covered tool must comply.
Penalties & enforcement
Civil penalties are $500 for a first violation, and $500–$1,500 for each subsequent violation. Critically, each day a noncompliant AEDT is used is a separate violation, and a failure to provide the required notice is a separate violation each day — so penalties accumulate quickly. DCWP enforces. Separately, an AI hiring tool that produces discriminatory outcomes can trigger far larger federal Title VII / ADA liability regardless of whether you ran a bias audit.
How to comply: a practical checklist
- Determine whether each hiring tool is an AEDT that 'substantially assists or replaces' a human decision for NYC roles.
- Engage a genuinely independent auditor (not the vendor) to run an impact-ratio bias audit covering race/ethnicity and sex.
- Post the audit summary and the distribution date publicly on your careers page before using the tool.
- Build the 10-business-day candidate notice into your application flow, with the job qualifications assessed and a way to request an alternative process.
- Re-audit at least every 12 months and whenever the tool materially changes.
- Treat the bias audit as a floor, not a ceiling: also validate the tool against federal Title VII/ADA standards and EEOC guidance to manage discrimination exposure.
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Every claim above traces to one of these verified entries in our index. Each links to its full record and its official source. Status labels reflect the live dataset as of 2026-06-17.
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In effect Stronger protection
NYC AEDT Bias Audit Law (LL 144)
New York City, NY · Effective 2023-01-01 · NYC Local Law 144 of 2021; NYC Admin. Code §§ 20-870 to 20-874
Employers and employment agencies in New York City may not use AI hiring or promotion tools unless the tool has passed an independent bias audit within the past year. Job candidates must be told an automated tool is being used and can request information about the data it relies on.
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In effect Stronger protection
Title VII / ADA (AI hiring)
United States · Effective 1965-07-02 · 42 U.S.C. § 2000e et seq.; 42 U.S.C. § 12101 et seq.
Federal anti-discrimination law applies when employers use AI tools to screen resumes, score interviews, or rank candidates: if an AI tool disproportionately screens out people by race, sex, disability, or other protected traits, the employer can be liable. The EEOC's specific AI guidance documents from 2023 were removed in January 2025, but the underlying laws are unchanged and still enforceable.
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In effect Moderate protection
EEOC AI Title VII Guidance
United States · Effective 2023-05-18 · EEOC TA (May 18, 2023)
EEOC guidance applying Title VII disparate-impact analysis to AI hiring tools. Employers are liable for discriminatory outcomes even when the tool is built by a vendor.
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Blocked / in litigation Limited protection
Mobley v. Workday (AI Hiring Bias)
United States · Mobley v. Workday, Inc., No. 3:23-cv-00770 (N.D. Cal.)
Derek Mobley's collective action suit in federal court alleges that Workday's AI hiring and screening tools systematically discriminated against Black, disabled, and older job applicants — denying him hundreds of opportunities. As of June 2026, the case has survived multiple dismissal motions; a court authorized notice to class members in February 2026 (March 7 opt-in deadline), and the court rejected Workday's argument that older workers can't be 'applicants' under the ADEA. The case is in discovery and could establish landmark precedent on AI vendor liability.
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