Are Your Clients Complying With New York City’s AEDT Law?

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It seems no one can escape artificial intelligence (AI) these days, not even—and now especially—New York employers…and their lawyers. At the start of this year, a NYC law regulating the use of automated employment decision tools (AEDTs) took effect. In late April, the Department of Consumer and Worker Protection (DCWP) finalized rules providing some clarification of the law. The rules became enforceable last month.

Identifying an AEDT

The definition of an AEDT is somewhat technical and wordy, but it can be broken down into the following four components. (At a high-level, think AI to assist with hiring and promotion decisions.)

1. A computational process derived from a group of mathematical computer-based techniques

2. which generate a prediction or assign an observation to a group based (at least in part) on a computer’s identification of inputs, each input’s importance, and other parameters to improve accuracy

3. that issues a simplified output (e.g., categorizing a candidate’s resume based on key words, assigning a skill or trait to a candidate, or recommending that a candidate advance to an interview)

4. to substantially assist or replace discretionary decision making when it comes to hiring and promotional decisions with respect to individuals who have applied for a specific employment position by submitting information required by the employer (i.e., relying solely on the simplified output, giving more weight to the simplified output than any other criterion in a set, or using the simplified output to overrule conclusions derived from other factors, such as a human’s decision).

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