Local Law 144 regulates covered use of automated employment decision tools in New York City. At a high level, employers and employment agencies cannot use a covered AEDT in the city unless a qualifying bias audit was completed within the preceding year, required audit information is publicly available and applicable notices are provided.
1. What is an AEDT?
NYC Admin. Code §20-870 defines an AEDT as a computational process derived from machine learning, statistical modeling, data analytics or artificial intelligence that issues simplified output used to substantially assist or replace discretionary decision making for employment decisions. The DCWP rule further defines what “substantially assist or replace” means.
Detailed AEDT definition guide →
2. Which employment decisions are covered?
For LL144, an “employment decision” means screening candidates for employment or employees for promotion within the city. DCWP also makes clear that screening earlier in a hiring or promotion process may be covered; the rule is not limited to the final decision.
3. What does “in the city” mean?
DCWP's FAQ describes covered use using NYC-linked job/office and employment-agency location conditions. Candidate residence does not replace that territorial-use test. NYC residence is separately relevant to notice obligations.
4. What is a bias audit?
A bias audit is an impartial evaluation by an independent auditor. At minimum, the audit includes the calculations required by 6 RCNY §5-301 for the applicable AEDT output: selection or scoring rates and impact ratios across required demographic categories.
5. Who can be the independent auditor?
DCWP does not approve or maintain a list of auditors. The definition in 6 RCNY §5-300 focuses on objective and impartial judgment and identifies relationships that disqualify independence.
Independent auditor checklist →
6. What data should be used?
Historical data is the normal basis. DCWP allows specified use of other-employer historical data or test data under the conditions described in the rules and FAQ. If test data is used, the public summary must explain its source and development. Inferred or imputed demographic data cannot be used to conduct the bias audit.
7. Which demographic analyses are required?
Applicable calculations are required across sex categories, race/ethnicity categories and intersectional categories of sex, ethnicity and race. The rules also require reporting of individuals not included in the calculations because they fall within an unknown category.
8. Can small categories be excluded?
An independent auditor may exclude a category representing less than 2% of the audit data from required impact-ratio calculations, but the exclusion requires disclosure and justification and does not erase the group from the report.
9. What must be published?
Before covered use, the employer or employment agency must make the date of the most recent bias audit, a summary of results and the AEDT distribution date publicly available. 6 RCNY §5-303 specifies required content including data source/explanation, unknown counts, applicant/candidate counts, applicable rates and impact ratios.
10. How long must results remain available?
Under 6 RCNY §5-303, the summary of results and distribution date must remain posted for at least six months after the latest use of the AEDT for an employment decision.
11. What notices are required?
DCWP's FAQ explains notice obligations for NYC-resident employees and job candidates, including information about AEDT use and the qualifications/characteristics assessed. Notice generally must be provided 10 business days before use through the permitted methods.
12. Employer versus vendor responsibility
A vendor can coordinate an independent audit of its tool, but DCWP states that employers and employment agencies are ultimately responsible for ensuring a bias audit was completed before covered use.
13. What are the penalties?
NYC Admin. Code §20-872 sets statutory civil-penalty limits and treats each day of prohibited AEDT use as a separate violation. The current DCWP penalty schedule in 6 RCNY §6-81 specifies scheduled amounts, including $375 for a first non-default violation, $1,350 for a second and $1,500 for third/subsequent violations, with separate default amounts.
14. Does an impact ratio determine compliance or discrimination?
No single impact-ratio value is a complete legal conclusion. DCWP's FAQ expressly states that LL144 requires the bias audit but does not prescribe a specific action based solely on the audit result. Other federal, state and NYC anti-discrimination laws remain relevant.
Last legally reviewed: September 17, 2026.
Additional source: DCWP Automated Employment Decision Tools FAQ.