New York City has implemented a new law, known as the Bias Audit Law, which requires organizations that use AI and other machine learning technology as a part of their hiring process to conduct an annual audit. The law covers any algorithm used for hiring or employee assessment that generates predictions or classifications. Companies operating and hiring in New York City that fail to comply could face penalties of up to $1,500. While New York City’s law is the broadest in its scope, other states and regions, including California and the European Union, are also considering regulations on AI-based hiring tools. Experts believe that the new law could set a precedent for similar reforms across the country.
Why it matters: Regardless of office location, remote work increases the possibility that candidates from New York could apply to roles in non-local organizations. This law extends outside of just “NYC-based workers, if a person is performing or applying for a job in the city they are eligible for protection under the new law”
- New York City’s Bias Audit Law requires organizations to conduct an annual audit of AI-based hiring tools to detect and eliminate biases against gender or race.
- Non-compliance with the law can result in penalties, encouraging organizations to prioritize fair and unbiased hiring practices.
- The law could serve as a blueprint for similar regulations on AI-based hiring tools in other states and region
