NYC Local Law 144 requires bias audits and notice for automated hiring tools used in New York City. Effective July 5, 2023, with penalties up to $1,500 per violation per day. We help you manage audits, notices, and ongoing compliance.
NYC Local Law 144 of 2021 (Int 1894-2020) regulates the use of Automated Employment Decision Tools (AEDTs) by employers and employment agencies in New York City. It requires annual bias audits, candidate notification, and public disclosure of audit results.
Effective July 5, 2023: Employers using AI, machine learning, or algorithmic tools to screen, evaluate, or select candidates for NYC positions must comply with bias audit and notice requirements. The law is enforced by the NYC Department of Consumer and Worker Protection (DCWP).
Annual independent audit required
10-day advance candidate notification
Complements EU AI Act employment provisions and FTC AI guidelines.
Employers in NYC
Organizations using AEDTs to screen or hire candidates for NYC positions
Employment agencies
Agencies using AEDTs to evaluate or refer NYC-based candidates
Software vendors
AEDT providers selling to employers or agencies in NYC
Remote hiring teams
Organizations hiring for remote roles but located in NYC
Promotion decisions
Employers using AEDTs for internal promotion or transfer in NYC
Multi-state operations
National employers with NYC employees or hiring for NYC positions
VerifyWise covers the core quantitative requirements of LL144: bias audit computation, demographic category analysis, intersectional breakdowns, and compliance record-keeping
Systematically identify all automated employment decision tools in your organization. The platform tracks each tool's purpose, vendor, deployment status and jurisdiction coverage to ensure you know exactly which systems fall under Local Law 144.
Addresses: Scope determination: What constitutes an AEDT
Manage the annual bias audit requirement with workflow tracking for independent auditor selection, data provision and audit completion. The platform maintains audit history and flags upcoming deadlines to ensure continuous compliance.
Addresses: Bias audit: Annual independent auditor requirement
Document disparate impact testing results across required categories (race/ethnicity and sex). The platform stores selection rates, impact ratios and statistical analyses that satisfy DCWP reporting requirements.
Addresses: Bias audit: Disparate impact testing and metrics
Track candidate notification requirements with automated reminders 10 business days before AEDT use. The platform documents notice delivery, method and timing to demonstrate compliance with transparency obligations.
Addresses: Notice: 10-day advance notification to candidates
Maintain public website publication requirements for bias audit results, methodologies and distribution dates. The platform tracks when results were published, updated and ensures all required information remains publicly accessible.
Addresses: Publication: Audit results on employer website
Document alternative selection processes and maintain required data retention. The platform stores historical audit data, exemption justifications and demonstrates you've provided alternatives as the law requires.
Addresses: Alternatives: Alternative selection process availability
All compliance activities are tracked with timestamps, audit trails, and evidence documentation. This demonstrates systematic compliance rather than after-the-fact documentation.
VerifyWise provides dedicated tooling for all core compliance requirements
Compliance requirements
Requirements with dedicated tooling
Coverage across all obligations
Annual independent audits with disparate impact testing
Candidate notification 10 days before AEDT use
Audit results and methodology on public website
Historical data and alternative selection process records
Automated reminders and deadline management for renewals
Calculate selection rates and impact ratios by category
Track 10-day notice delivery with documentation
Crosswalk to EU AI Act and other employment AI laws
What must be tested and how to comply with independent audit obligations
Bias audit must be conducted by an independent auditor who did not develop or is not currently marketing the AEDT.
Calculate selection rates and impact ratios for each category (race/ethnicity and sex) to determine disparate impact.
Testing must cover race/ethnicity categories and sex categories as defined by DCWP regulations.
Bias audit must be completed within one year prior to the use of the AEDT and updated annually.
The bias audit must calculate the selection rate for each category (e.g., Hispanic or Latino, Female) and compare it to the selection rate of the most selected category. An impact ratio below 0.8 (80% rule) may indicate disparate impact under EEOC guidelines.
Selection rate
(Selected from category) / (Total from category)
Impact ratio
(Category selection rate) / (Highest selection rate)
What candidates and employees must be told and when
At least 10 business days before use of AEDT
For AEDTs used on current employees
Public website disclosure
Employers must provide a process for candidates and employees to request an alternative selection process or reasonable accommodation as an alternative to the AEDT. Instructions for making this request must be published on the employer's website alongside bias audit results.
Common automated employment decision tools covered by Local Law 144
Definition: Any computational process derived from machine learning, statistical modeling, data analytics, or AI that substantially assists or replaces discretionary decision-making for hiring or promotion.
If a tool scores, ranks, classifies, or recommends candidates, it likely qualifies as an AEDT.
A practical path to Local Law 144 compliance with clear milestones
The NYC Department of Consumer and Worker Protection (DCWP) enforces Local Law 144 with significant daily penalties
Initial non-compliance with notice, audit, or publication requirements
Repeated failures to comply with any Local Law 144 requirement
Ongoing non-compliance accrues daily penalties until resolved
Example penalty calculation: Failing to conduct a bias audit for 30 days could result in penalties of $15,000 to $45,000 (30 days × $500-$1,500 per day). Continuous compliance is essential.
Enforced by: NYC Department of Consumer and Worker Protection
Access ready-to-use employment AI policy templates aligned with Local Law 144, EU AI Act and other regulations
Common questions about NYC Local Law 144 compliance
Start managing your bias audits, candidate notices, and ongoing compliance requirements today.