As previously discussed in our past article and publication, New York City’s Local Law 144 was set to go into effect on January 1, 2023. However, agency enforcement is now postponed until April 15, 2023.

Responding to increased public and governmental scrutiny of the use of artificial intelligence, machine learning, and other technologies, New York City enacted Local Law 144.

  • Local Law 144 regulates NYC employers’ use of automated employment decision tools (AEDT) in hiring and employment-related processes, and intended to protect employees and job candidates from potential biases and discriminatory effects that may result from the use such tools.

Given the broad scope of the law’s terms and lack of clarity as to its various requirements, preparing to comply with the law by its original effective date, January 1, 2023, has been a leading concern of employers since the law was enacted in 2021.

After several months of waiting for regulatory guidance on this issue, on September 23, 2022, the New York Department of Consumer and Worker Protection’s (DCWP) published its proposed rules for the interpretation and application of Local Law 144. A public hearing for comments on the proposed rules was initially scheduled for October 24, 2022.

Public interest for the hearing was much larger than the DCWP anticipated, and it was rescheduled for November 4, 2022. The virtual hearing featured over 270 attendees and included live oral comments from more than a dozen participants.

Due to the high volume of comments requesting clarification and guidance regarding the proposed regulations, especially those concerning key compliance issues, on December 12, 2022, the DCWP announced that it will hold a second public hearing on January 23, 2023, and is postponing enforcement of the law until April 15, 2023.

This is welcome news for employers and employment agencies that hire or promote candidates within New York City with the assistance of AEDT – which based on the law’s definitions, arguably extends well beyond what many would consider an “automated” technology, underscoring the importance of clearer regulatory guidance.

Jackson Lewis attorneys are closely monitoring updates and changes to the effective date and guidance and are actively assisting employers with navigating the use of AEDT and how to comply with the forthcoming law.

Tags: artificial intelligence, compliance, data analytics, hiring
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Photo of Eric J. Felsberg Eric J. Felsberg

Eric J. Felsberg is a Principal in the Long Island, New York, office of Jackson Lewis P.C. and the National Director of JL Data Analytics Group.

As the National Director of JL Data Analytics Group, Mr. Felsberg leads a team of multi-disciplinary lawyers…

Eric J. Felsberg is a Principal in the Long Island, New York, office of Jackson Lewis P.C. and the National Director of JL Data Analytics Group.

As the National Director of JL Data Analytics Group, Mr. Felsberg leads a team of multi-disciplinary lawyers, statisticians, data scientists, and analysts with decades of experience managing the interplay of data analytics and the law. Under Mr. Felsberg’s leadership, the Data Analytics Group applies proprietary algorithms and state-of-the-art modeling techniques to help employers evaluate risk and drive legal strategy. In addition to other services, the team offers talent analytics for recruitment, workforce management and equity and policy assessments through predictive modeling, partners with employers in the design of data-driven solutions that comply with applicable workplace law, manages and synthesizes large data sets from myriad sources into analyzable formats, provides compliance assessment and litigation support services including damage calculations, risk assessments, and selection decision analyses, and offers strategic labor relations assistance including determination of long term costs of collective bargaining agreements, review of compliance with collectively bargained compensation plans and assessment of the efficacy of training programs. The JL Data Analytics Group designs its service delivery models to maximize the protections afforded by the attorney-client and other privileges.

Mr. Felsberg also provides training and daily counsel to employers in various industries on day-to-day employment issues and the range of federal, state, and local affirmative action compliance obligations. Mr. Felsberg works closely with employers to prepare affirmative action plans for submission to the Office of Federal Contract Compliance Programs (OFCCP) during which he analyzes and investigates personnel selection and compensation systems. Mr. Felsberg has successfully represented employers during OFCCP compliance reviews, OFCCP individual complaint investigations, and in matters involving OFCCP claims of class-based discrimination. He regularly evaluates and counsels employers regarding compensation systems both proactively as well as in response to complaints and enforcement actions.

Mr. Felsberg is an accomplished and recognized speaker on issues of workplace analytics and affirmative action compliance.

While at Hofstra University School of Law, Mr. Felsberg served as the Editor-in-Chief of the Hofstra Labor & Employment Law Journal.

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