What is an AEDT Audit?

Automated Employment Decision Tools audits required for AI use

AEDT Audits are necessary for NYC employers who are using Automated Employment Decision Tools (AEDT) as part of their hiring, job promotion and production processes. What this means is that employers using AI during the hiring process, for employee assessments and to improve worker productivity have new rules. While AI can help streamline processes and make them more efficient, the use of AI also requires greater scrutiny. This is where the AEDT audits come into play. Local Law 144 addresses the use of AEDT by NYC employers.

Bias Audits for AEDT

The New York Law Journal points out that NYC Local Law 144 is the most robust law for regulating AEDTs.

What is the purpose of the audit?

The purpose of the audit is to ensure the AI does not use biased information in employment decisions.

The bias audit must evaluate:

  • The selection rate for race/ethnicity and sex categories that the EEOC requires in a report
  • An impact ratio and intersectional analysis (would combine ethnicity and sex) in addition to an independent evaluation of each protected category

What requirements do employers have to meet before using AEDT?

Local Law 144 requires that that employers:

  • Within one year of using an AEDT, have an independent auditor conduct an audit (this could result in annual audits)
  • Compile and make audit results available to the public
  • Notify candidates and employees when the employer will use AEDT for assessments and what characteristics and qualifications the AEDT will measure
  • Allow candidates and employees to request an alternative process or accommodation instead of AEDT

As an employer, do you have legal questions about using AEDT or about your rights regarding an AEDT Audit?

If you have questions about how the use of AEDT or a bias audit affects your business, arrange a consultation with an experienced employment defense lawyer. Call Stephen D. Hans & Associates, P.C. at (718) 275-6500.