NEW YORK CITY ISSUES FINAL RULES ON AI BIAS AUDIT LAW AND DELAYS ENFORCEMENT UNTIL JULY

On April 6, 2023, the New York City Department of Consumer and Worker Protection ("DCWP") published a Notice of Adoption of Final Rules to implement New York City's recent law mandating bias audits of AI-enabled systems used in employment and hiring decisions in New York City and the publication of the results of such audits (see prior blog posts). The DCWP also announced that it would delay enforcement of the law and the final rules  from April 13, 2023, until July 5, 2023. 

Defined Terms:

The final rules modify the definition of "machine learning, statistical modeling, data analytics, or artificial intelligence to expand its scope by eliminating the requirement that the computer-based technique at issue refine "inputs and parameters through cross-validation or by using training and testing data. In other words, the DCWP broadened the pool of covered AEDT's by 

eliminating the need for tools to be cross validated. 

Bias Audit Requirements – The selection rate and impact ratio for the intersectional categories of sex, race, and ethnicity: 

Now, the final rules build on these requirements and include the additional requirement that employers indicate that were not included in the required calculations because they fall within an unknown EEOC category. 

Data Requirements: 

The revised rules permitted employers to use test data where historical data of a covered AEDT was insufficient. The final rules clarify that historical data may be culled from one or more employers or employment agencies that use the covered AEDT but only if such employer or employment agency (i) has provided the independent auditor with historical data from its own use of the AEDT, or (ii) has never used the AEDT. 

Published Results Requirements:

The final rules bias audit results must now include the number of individuals assessed by the AEDT at issue that falls within an unknown EEO category. 

This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007