New York now requires a bias audit before AI can screen a candidate

What happened

New York City's Local Law 144 covers Automated Employment Decision Tools. Companies using certain automated tools to make employment decisions must run a bias audit, publish a summary of the results, and notify candidates the tool is being used.

Violations can carry penalties of $500-$1,500 per day. The law traces a clear path - AI tool → risk assessment → testing → documentation → governance - and is a preview of where regulation in this space is heading more broadly.

The business problem

Using AI in employment decisions now carries a specific, enforceable compliance obligation, not just a best-practice recommendation.

What could have helped

• Treat bias auditing as a compliance requirement, not an optional extra, wherever AI touches hiring decisions
• Document audit results in a form you can publish or produce on request
• Build candidate notification into the process from the start
• Expect more jurisdictions to follow this pattern

Where this points