The definition in plain terms
Local Law 144 applies to employers and employment agencies using such a tool for candidates or employees in New York City. A tool is generally in scope when its simplified output, such as a score, tag or ranking, is relied on heavily in the decision: used alone, weighted more than other factors, or able to overrule a human's conclusion. The New York City Department of Consumer and Worker Protection enforces the law, which it began enforcing in July 2023.
What Local Law 144 requires
- A bias audit by an independent auditor no more than one year before the tool is used.
- A public summary of the most recent audit's results and the date the tool was first used.
- Notice to candidates and employees who live in New York City, at least 10 business days before use, including the job qualifications and characteristics the tool assesses.
- Information on the type and source of data collected and the retention policy, available on request or published.
What the bias audit calculates
| Term | Meaning |
|---|---|
| Selection rate | The share of candidates in a category who move forward or are selected. |
| Scoring rate | For tools that score, the share in a category scoring above the sample's median. |
| Impact ratio | A category's rate divided by the rate of the most selected category. |
| Categories | Sex, race and ethnicity, and their intersections. |
How SynergicHire supports AEDT obligations
SynergicHire keeps an append-only activity log, selection rates, and a row per decision that an independent auditor can use for a bias audit; exporting is itself audited. Candidates are told what an AI reads, what is recorded and who decides before they apply, and again before a screen or round starts. A named person makes every decision. Whether your use is in scope, and how to meet the law, is for you and your counsel to decide.
Questions
Is every AI hiring tool an AEDT?
Not necessarily. It depends on whether its output substantially assists or replaces the decision as the rules define it. This is general information, not legal advice.
Who has to commission the bias audit?
The employer or employment agency using the tool, through an independent auditor. Vendors can supply data to support it.
What are the penalties under Local Law 144?
Civil penalties of up to $500 for a first violation and $500 to $1,500 for each subsequent one, with each day of use and each missing notice counting separately.
Does the law apply outside New York City?
Local Law 144 covers roles and candidates in New York City. Other places have their own rules, such as Illinois, Colorado and the EU.