Short answer: not every AI or hiring tool is an AEDT under NYC Local Law 144. The definition focuses on a computational process that produces simplified output and is used to substantially assist or replace discretionary decision making in covered hiring or promotion screening.
| Scope question | What to verify |
|---|---|
| Computational process? | Machine learning, statistical modeling, data analytics or AI. |
| Simplified output? | A score, classification, recommendation, ranking or similar output. |
| Substantial assistance? | The output meets one of DCWP's reliance / weighting / override thresholds. |
| Covered employment use? | Hiring or promotion screening with the required NYC nexus. |
What is the statutory AEDT definition?
NYC Admin. Code §20-870 defines an automated employment decision tool as a computational process derived from machine learning, statistical modeling, data analytics or artificial intelligence that issues simplified output — such as a score, classification or recommendation — used to substantially assist or replace discretionary decision making for employment decisions affecting natural persons.
When does an output “substantially assist or replace” human decision making?
6 RCNY §5-300 operationalizes the phrase. The threshold is met where the simplified output is:
- relied on solely, with no other factors considered;
- weighted more than any other criterion in a set of criteria; or
- used to overrule conclusions derived from other factors, including human decision making.
What kinds of outputs can qualify?
The rule's “simplified output” concept includes forms such as scores, tags, classifications, recommendations and rankings. A tool that merely translates or transcribes existing text is not treated as a simplified-output AEDT on that basis alone.
Which employment decisions are covered by LL144?
For LL144, an “employment decision” means screening candidates for employment or employees for promotion within the city. The law is not a general regulation of every algorithm used in workforce management. In particular, this LL144 definition should not be expanded to termination or layoff decisions merely because other laws or the EU AI Act may regulate those uses differently.
Can screening before the final hiring decision be covered?
DCWP's AEDT FAQ states that screening at any point in a hiring or promotion process can be covered if the AEDT substantially assists the assessment. LL144 is not limited to the final hire/promotion decision.
Are resume-bank searches and candidate outreach covered?
DCWP also states that using a tool to scan a resume bank, conduct outreach to potential candidates or invite applications does not trigger the LL144 audit/notice requirements where the person has not applied for a specific position and is not an employee being considered for promotion.
Is candidate residence the NYC scope test?
DCWP describes AEDT use “in the city” through NYC-linked job/office and employment-agency location conditions. NYC residence is separately relevant to notice obligations. A website that collapses these two questions into “candidate lives in NYC = LL144 applies” is oversimplifying the rule.
What should an AEDT scope review document?
Scope analysis should document what the tool does, what output it produces, how decision makers use that output, the hiring/promotion stage and the NYC nexus. The calculation engine should not silently convert those facts into an automatic legal conclusion.
Primary sources: NYC Admin. Code §20-870 · 6 RCNY §5-300 · DCWP AEDT FAQ.
Related: Local Law 144 Guide · Audit process · Methodology.
Use the AEDT Checker first, then the broader LL144 applicability checker for workflow and NYC-scope questions.
Use the AEDT Checker Check LL144 applicability Request a scope review
General information only; not legal advice.