NYC Local Law 144 Bias Audit
New York City Local Law 144, effective January 1, 2023, mandates bias audits for automated employment decision tools (AEDTs) used in hiring or promotion. Employers and agencies must ensure these tools undergo an independent bias audit annually, with a summary of results publicly accessible. Additionally, candidates must be notified 10 business days before AEDT use, provided with details on the tool’s criteria, and offered the option for alternative assessments. Violations result in daily fines, emphasizing the need for rigorous compliance. With the complexities of Local Law 144, BABL AI’s audit services ensure your tools are compliant, transparent, and trustworthy.
Importance of an AI Bias Audit
AI bias audits are not just a regulatory requirement under Local Law 144—they are vital for fostering equity in hiring. Automated decision tools can inadvertently perpetuate biases, leading to legal risks, reputational damage, and exclusion of qualified candidates. BABL AI’s audits rigorously evaluate AEDTs for ethical risks, good governance, and disparate impacts, ensuring compliance and ethical alignment. With our expertise, your organization can meet the law’s demands while promoting fairness and trust, positioning your brand as a leader in responsible AI use.
How our Audit works
Pre Audit Scoping
BABL AI walks your team through a series of questions to determine where you currently stand. We then inform your team what documentation is needed for our audit process, and help you understand everything for compliance, including how to test the various selection rates and impact ratios of protected categories as required by the law. NO SOFTWARE DOWNLOADED OR PLATFORM INTEGRATIONS REQUIRED!
Audit Review
Once all your documentary evidence has been submitted for evaluation, our well trained certified auditors review your documentation against our criteria. During this review process, BABL AI auditors might ask for more supporting documentation or interact with your internal and external stakeholders, such as employees or other third-parties, to verify the truth of statements made in the submitted documentation. At the end of the audit review, the auditors reach an overall audit opinion that determines the result of the audit.
Audit Review
Once an opinion is determined, BABL AI will draft a public summary report for each AEDT, if mandated by the regulatory body, and present the final report to your team.
Benefits of a BABL AI NYC Bias Audit
With BABL AI’s expertise, you’ll not only meet regulatory obligations but also champion innovation and fairness in your hiring practices. Our NYC Bias Audit isn’t just about avoiding fines. It’s about unlocking opportunities:
Enhanced Reputation: Showcase your commitment to equitable hiring practices, building trust with candidates and stakeholders.
Reduced Legal Risks: Protect your organization from penalties and lawsuits with our thorough compliance audits.
Operational Efficiency: Streamline AEDT use with robust, legally sound practices.
Candidate Confidence: Foster transparency to attract top talent by demonstrating fairness in hiring.
Competitive Advantage: Position your organization as a leader in ethical AI, setting you apart in a crowded market.
NYC Local Law 144 Compliance Package
Navigate the complexities of NYC Local Law 144 with confidence using BABL AI’s comprehensive compliance package. This downloadable resource is designed to help companies understand the requirements of this landmark regulation, which promotes transparency, accountability, and fairness in the use of Automated Employment Decision Tools (AEDTs) in hiring and recruitment processes.
As HR technology increasingly incorporates AI and machine learning, Local Law 144 mandates independent audits to assess and disclose the disparate impact of AEDTs on specific demographic groups. BABL AI, a leader in AI auditing and compliance, equips employers and vendors with the tools and expertise needed to meet these requirements and address ethical, privacy, and compliance risks effectively.
Prepare your organization for compliance with confidence. Download for FREE our NYC Local Law 144 Compliance Package today.
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FAQs
What is the New York City Bias Audit Law (Local Law 144)?
The New York City Bias Audit Law (Local Law 144) governs the use of automated hiring tools (AEDT) in New York City. It mandates that algorithm-based recruiting, hiring, or promotion technologies must undergo an annual bias audit from an independent third-party auditor before they can be used for candidates and employees.
What is an AEDT?
AEDT stands for “Automated Employment Decision Tool.” It refers to software or systems that use algorithms and automation to assist in various aspects of the employment process, such as recruiting, hiring, or promoting employees. AEDTs can be used for tasks like screening resumes, conducting initial candidate assessments, or identifying potential candidates for job openings.
Who is affected by the NYC Bias Audit Law?
New York City Local Law 144, also known as the Bias Audit Law, affects employers of all sizes within New York City that use automated employment decision tools (AEDTs) for recruiting, hiring, or promoting candidates and employees.
What are some examples of an AEDT?
The NYC Bias Law states that an AEDT is “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that impact natural persons.”
This includes but is not limited to: Applicant Tracking Systems (ATS), Pre-employment Assessment Software, Chatbots for Initial Screening, Resume Screening Algorithm, Video Interview Platforms.
What information is disclosed on the audit public summary?
We transparently provide all legally required information, along with essential context to comprehend the audit opinion and summary of results. Furthermore, we openly disclose our audit criteria and methodology, offering maximal transparency while safeguarding the intellectual property of the audited organization.
How long does the audit process take?
On average our audits take between 2-3 weeks to complete after all relevant documentation has been submitted. This timeframe can vary depending on many circumstances like readiness and resubmission of unsatisfactory documentation, but BABL AI will help you at every stage to ensure an easy process.
Why should I get an Algorithmic Audit?
In addition to ensuring compliance with emerging regulations such as New York City Local Law 144, an algorithmic audit serves as a powerful tool for reassuring your stakeholders that your algorithms undergo vigilant bias monitoring and testing. This proactive approach helps mitigate potential risks posed by your systems while significantly enhancing transparency, ultimately fostering greater trust in your AI systems.
Can you do multiple audits at the same time?
Absolutely! Our audit process is highly adaptable to cater to your unique compliance and assurance requirements. Feel free to get in touch with us and have a conversation with one of our expert auditors to discover the full spectrum of solutions BABL AI can offer.
Reach out to us today for a free consultation!