Need to know: New York City AI bias law

Companies that use automated tools to screen candidates for jobs based in New York City must check those systems for bias or potentially run afoul of a first-in-the-nation law.

The law, which took effect July 5, is aimed at rooting out any bias against individuals in job hiring when an automated employment decision tool (AEDT) is used. The law requires that the employer or third-party hiring partner audit the AEDT for bias.

The final rules describe AEDTs as certain systems that rely on algorithms, statistical modeling, data analytics, artificial intelligence (AI), or machine learning to score, classify, or recommend job candidates. AEDTs may search résumés for gaps in employment history or for certain words and, based on the results, not recommend candidates for interviews.