Can you use these tools in NYC?
Automated employment decision tools have come under scrutiny in New York City. There are conditions employers must follow to use them legally.
What are automated employment decision tools?
We’ve reached the point in our high tech society where AI exists for making employment decisions. Automated employment decision tools include any computation process derived from:
- Machine learning
- Statistical modeling
- Data analytics
- Artificial intelligence
These methods produce a simplified output. Simplified output refers to a score, classification or recommendation. As a result, employment decisions to screen employment candidates could come from automated decision tools. This also applies to employees screened for promotion.
Consequently, NYC has passed a statute to ensure no bias becomes involved. Therefore, companies must conduct bias audits of the tools no more than one year prior to putting the tools into use.
What is a bias audit?
An auditor independent of the company must audit the employment tool. The auditor must ensure the tool has no significant impact that would discriminate based on:
- Race / ethnicity
- Gender
- Job category
The audit would ensure an impartial employment evaluation. Also, it would ensure that employers’ use of the tool is in accordance with anti-discrimination laws at state and federal levels.
(Reference: JD Supra)
Employers must disclose the use of the tools
Employers must notify candidates and employees that they will use automated employment decision tools during hiring or promotion. They must also explain the job characteristics and qualifications the tool will assess. At least 10 days prior to using the tool, employers must send notices to the candidates and employees. In addition, they must notify them that they can request an alternative process. However, legally, the employers do not have to accommodate such requests.
Furthermore, employers and employment agencies using automated employment decision tools must post a disclosure online. They must also notify candidates or employees within 30 days of receiving a written request. They must disclose:
- Information about the type of data collected
- Sources of the data
- Data retention policy
Authorities can impose civil fines up to $1,500 for each instance of failed compliance.
If you have questions or concerns, consult with our attorneys at Stephen D. Hans & Associates, P.C. We are glad to provide you with experienced legal guidance. Call (718) 275-6500 to arrange an appointment.