NYC Local Law 144: Complete Guide for Employers

What is NYC Local Law 144?

NYC Local Law 144 (LL144) is a landmark regulation requiring employers using automated employment decision tools (AEDTs) to conduct annual independent bias audits and publish the results.

Who Must Comply?

Any employer or employment agency that:

Uses an AEDT in hiring or promotion decisions
Has employees or candidates in New York City
The tool substantially assists or replaces discretionary decision-making

Key Requirements

1. Independent Bias Audit

Conduct an annual independent bias audit by an impartial third-party auditor. The auditor cannot be affiliated with the employer or the AI tool vendor.

2. Summary Publication

Make a summary of the audit results publicly available on the employer's website or career page.

3. Candidate Notification

Notify candidates and employees at least 10 business days before using an AEDT. Notification must include:

That an AEDT will be used
The job categories the AEDT will be used for
The qualifications and characteristics the AEDT will use
Information about the independent bias audit

4. Alternative Selection Process

Provide an alternative selection process or accommodation for candidates who request it.

Penalties

First violation: Up to $500
Subsequent violations: Up to $1,500 each
Each day of non-compliance constitutes a separate violation

How to Prepare

Inventory all AI-based hiring tools in use
Identify which tools qualify as AEDTs under the law
Select an independent auditor from our directory
Schedule the bias audit at least 30 days before deployment
Prepare candidate notification procedures
Plan for public disclosure of audit results
Use our LL144 compliance checklist to track progress

What Counts as an AEDT?

A tool qualifies as an AEDT if it:

Uses machine learning, AI, or other computational techniques
Generates a prediction, classification, recommendation, or score
Is used to substantially assist or replace discretionary decision-making in hiring or promotion