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New York City's Local Law 144 of 2021 — the Automated Employment Decision Tool (AEDT) law — is one of the most stringent AI hiring regulations in the United States. If your business uses AI or automated tools to screen, rank, or evaluate job candidates or employees in NYC, you are legally required to comply.
Enacted in 2021 and enforced since July 2023, NYC Local Law 144 regulates the use of Automated Employment Decision Tools (AEDTs) — any computational process that uses machine learning, statistical modelling, data analytics, or AI to substantially assist or replace discretionary decision-making in hiring or promotion.
The law applies to any employer or employment agency that uses an AEDT to screen candidates or employees for positions based in New York City — regardless of where the employer is headquartered.
Penalties for non-compliance can reach $1,500 per violation per day. Each candidate screened without proper compliance may constitute a separate violation.

Enforced Since
July 2023
Any employer with employees or candidates based in New York City who uses an AEDT to evaluate them for positions based in New York City.
Staffing firms and recruitment agencies that use automated tools to screen or rank candidates for NYC-based roles.
Companies using any AI-powered ATS, resume screener, video interview analyser, or scoring algorithm for NYC positions.
NYC Local Law 144 imposes four mandatory obligations on covered employers and agencies.
Requirement 01
You must commission an independent bias audit of your AEDT before use and annually thereafter. The audit must be conducted by a qualified, independent auditor — not your vendor.
Requirement 02
A summary of the bias audit results — including the date, the auditor's name, and the statistical findings — must be published on your company's website.
Requirement 03
You must notify NYC-based candidates and employees at least 10 business days before using an AEDT to evaluate them, and disclose the tool's characteristics and data collected.
Requirement 04
Candidates and employees must be given the opportunity to request an alternative selection process or accommodation if they object to being evaluated by an AEDT.
If your business uses any of the following for NYC-based hiring or promotion, you may be subject to Local Law 144.
Our AI Compliance Audit is specifically designed for NYC employers navigating Local Law 144. We conduct a full gap analysis, review your AEDT usage, and deliver a written remediation roadmap — so you know exactly where you stand.

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National Institute of Standards and Technology Cybersecurity Framework
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