Beginning January 1, 2023, New York City will restrict employers from using artificial intelligence to make employment decisions unless they follow certain guidelines. The local law applies to employment decisions made “within the city” regarding job applicants and promotion decisions.

The law contains two major provisions. First, employers must provide notice to evaluatees ten business days before employing an AI system, provide them an opt-out, and list the qualifications and characteristics used by the system. Second, the system itself must be audited for bias annually. The results of the audit must be publicly posted on the employer’s website. Employers are also required to publicly post or make available upon request the sources of data used by the system and the organization’s data retention policy.

Putting it Into Practice: Organizations that use AI to make employment decisions in New York City should take time before January 1 to review these systems and develop appropriate notice and choice procedures.