The New York City Department of Consumer and Worker Protection (DCWP) updated its website April 6 to announce that enforcement of the impending law regulating the use of automation and artificial intelligence in employment decisions has been postponed for a second time to accommodate the final rule being published today.
"We thank everyone who provided comments about the proposed law during the public hearing process," said Michael Lanza, DCWP press secretary. "The final rule, which seeks to balance the feedback we received, will go into effect on May 6, and DCWP will begin enforcement of the law on July 5, 2023."
Previously the city announced a delay that pushed the original January 1 enforcement date to April 15.
The law has received an outpouring of comments from employers and technology vendors in the months leading up to enforcement. It prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit within one year of the use of the tool, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates. Violations of the provisions of the law would be subject to a civil penalty.
We've rounded up articles from SHRM Online to provide more context on the news.
Groundbreaking Legislation
New York City passed the first-of-its-kind law in 2021 prohibiting employers from using AI and algorithm-based technologies for recruiting, hiring or promotion without those tools first being audited for bias.
More Clarity Needed
The Society for Human Resource Management (SHRM) recently asked the city's regulatory agency for further guidance on the law, specifically around the exact definition of "automated employment decision tool" and the provisions related to conducting bias audits.
HR Must Be Vigilant
Employers must be aware of the ethical considerations of using artificial intelligence technology—even in its current nascent stage—in the workplace. HR and business leaders are being drawn into the conflict between the competitive advantage the technology can provide and concerns about negative implications like unintended bias.
EEOC to Focus on AI in Hiring
The U.S. Equal Employment Opportunity Commission (EEOC) announced an initiative last year to ensure that AI and other emerging technologies used in hiring and other employment decisions comply with federal anti-discrimination laws.
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.
Related Content
HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.
The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.
Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.