New York City's New Law Regulating the Use of Artificial Intelligence in Employment Decisions

On Nov. 10, 2021, the New York City Council passed a bill that regulates employers and employment agencies' use of "automated employment decision tools" in making employment decisions. The bill was returned without Mayor Bill de Blasio's signature and lapsed into law on Dec. 11, 2021. The new law takes effect on Jan. 1, 2023. This new law is part of a growing trend towards examining and regulating the use of artificial intelligence (AI) in hiring, promotional and other employment decisions. The new law regulates employers and employment agencies' use of "automated employment decision tools" on candidates and employees residing in New York City.