What it is
Local Law 144 of 2021. New York City prohibits employers and employment agencies from using an Automated Employment Decision Tool (AEDT) to screen candidates or employees for a position in NYC unless the tool has been independently bias-audited within the prior 12 months. Enforcement began July 5, 2023.
Who it covers
Any employer or employment agency using an AEDT to substantially assist or replace discretionary decision-making about NYC-based candidates or employees. Coverage attaches to the location of the job, not the location of the employer.
What’s required
- Annual bias audit. An independent auditor must test the AEDT for disparate impact across race/ethnicity and sex categories within 12 months of use.
- Public summary. Results must be posted on the employer’s website, including the audit date, the selection rates and impact ratios by category, and the source of the data used.
- Candidate notice. At least 10 business days before use, notify the candidate that an AEDT will be used, the job qualifications and characteristics it assesses, and (on request) the data type and source.
Penalties
- $500 for a first violation, plus $500 for each additional violation on the same day
- $500–$1,500 for each subsequent violation, per day of ongoing non-compliance
Each use of a non-compliant AEDT may constitute a separate violation. High-volume employers can accumulate penalties rapidly.
What changed in 2026
The December 2, 2025 NY State Comptroller audit of DCWP enforcement from July 2023 through June 2025 was sharply critical:
- 75% of test calls to NYC’s 311 hotline about AEDT issues were misrouted
- DCWP identified only 1 instance of non-compliance across 32 surveyed companies; the Comptroller’s auditors identified at least 17 potential violations
- DCWP’s reviews of publicly posted bias audits were described as “superficial”
DCWP has since committed to better complaint handling, cross-trained staff, and proactive (not just complaint-driven) enforcement. Employment law firms are warning of a stricter enforcement phase in 2026, with more frequent investigations and higher cumulative penalties.
Practical posture
- Confirm every in-scope AEDT has an audit dated within the prior 12 months
- Confirm the public summary is reachable from a stable URL and includes every required field
- Confirm candidate notice is delivered ≥10 business days before AEDT use, with a documented delivery record
- Move audit documentation under the same evidence-retention controls as other high-stakes compliance artifacts — the disparity between DCWP’s prior posture and 2026’s expected posture is the operational risk
