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What is NYC Local Law 144?

Updated 2026-09-16

NYC Local Law 144 is a New York City law requiring employers and employment agencies that use automated employment decision tools (AEDTs) on candidates or employees in the city to conduct annual independent bias audits and provide specified notices before use.

What counts as an automated employment decision tool

Under NYC's implementing rules, an AEDT is computational software — including derived from machine learning, statistical modeling, or data analytics — that substantially assists or replaces discretionary decision-making in hiring or promotion. Examples commonly discussed include resume scoring, video interview analysis, chat-based assessments, and game-based evaluations when they materially affect who advances.

The 'substantially assists' language matters. A tool that merely schedules interviews without scoring is different from one that ranks candidates or auto-rejects below a threshold. Employers should map their stack — including vendor subprocessors — to determine which products trigger obligations when used for NYC applicants.

The law applies to use on persons in New York City for covered employment decisions, not necessarily to every employer globally — but multinationals hiring remote NYC-based candidates often evaluate whether their tools fall in scope.

Core requirements at a glance

  • Annual bias audit by an independent auditor — published summary of results on the employer or vendor website.
  • Candidate notice at least ten business days before use — including job qualifications and characteristics the AEDT assesses, and information about requesting an alternative selection process or accommodation where applicable.
  • Candidate notice of sources and types of data collected, retention policy, and contact for questions.
  • Employer posting of audit summary and distribution date on careers pages or equivalent.

Bias audits and the four-fifths rule

Audit methodologies referenced in rulemaking often align with adverse impact analysis familiar from federal EEO practice — comparing selection or scoring rates across sex, race/ethnicity, and intersection categories where sample sizes permit. An audit that finds material disparities does not automatically ban the tool but creates public documentation and internal pressure to remediate or justify job relatedness.

Vendors marketing AI interview or assessment products to NYC employers increasingly provide audit summaries or support customer audits. Buyers should read published audit scopes carefully — which version of the model, which customer population, which time window — not just a logo stating 'bias audited.'

Local Law 144 does not replace federal EEOC obligations or state laws; it adds NYC-specific transparency and audit publication duties on top.

Disclaimer

This page is an educational explainer, not legal advice. Rule details, enforcement, and interpretations evolve. No statement here means Intervues or any other vendor is certified compliant with Local Law 144. Employers should consult qualified counsel and monitor NYC Department of Consumer and Worker Protection guidance for current requirements before deploying automated tools on NYC candidates.

Frequently asked

Does Local Law 144 apply to all AI interview products?

It applies when the tool substantially assists or replaces discretionary employment decisions for NYC candidates — depending on how the product is configured and used, not the marketing label alone.

Who publishes the audit results?

The employer or employment agency using the AEDT must publish the audit summary — vendors often assist but publication responsibility sits with the deploying employer under the law's framework.

What happens if a bias audit finds disparities?

The summary is published regardless. Employers then face business and legal decisions about remediation, alternative processes, or discontinuing the tool — specifics require counsel.

Is this related to the EU AI Act?

Different jurisdiction and framework. NYC Local Law 144 is city-level U.S. law focused on bias audits and notice; the EU AI Act is broader AI regulation with its own hiring-system provisions.

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