AI in Human Resources & Recruiting · Legal & Ethical Issues in HR AI
What is New York City's Local Law 144 and why does it matter for AI hiring tools
New York City's Local Law 144 regulates automated employment decision tools by requiring covered employers to conduct independent bias audits, publish the results, and notify candidates when such tools are used — making it one of the most prominent examples of AI hiring regulation in the U.S.
Key takeaways
- The law requires independent bias audits of covered automated employment decision tools before use.
- Audit results must generally be made publicly available, adding a transparency requirement beyond the audit itself.
- Employers must generally provide notice to candidates and employees when these tools are used in their evaluation.
- The law has become an influential, frequently cited model referenced in similar legislative proposals in other jurisdictions.
A Prominent, Specific Model for AI Hiring Regulation
New York City’s Local Law 144 is a municipal law specifically regulating the use of automated employment decision tools in hiring and promotion decisions, and it has become one of the most prominent, frequently cited examples of specific AI hiring regulation in the United States, influencing similar legislative proposals considered in other jurisdictions.
The Core Requirement: Independent Bias Audits
A central requirement of the law is that covered employers must have automated employment decision tools independently audited for bias before using them, with this audit specifically examining whether the tool produces different selection outcomes across different demographic groups, providing a structured mechanism for identifying potential discriminatory impact before a tool is used to affect real hiring decisions.
The Requirement to Publish Audit Results
Beyond simply conducting the audit, the law generally requires that audit results be made publicly available, adding a transparency dimension beyond internal compliance alone — this public disclosure requirement is intended to create external accountability, allowing candidates, researchers, and other stakeholders to review documented bias audit findings rather than relying solely on an employer’s internal, unverified assurances.
The Requirement to Notify Candidates and Employees
The law also generally requires covered employers to provide notice to candidates and employees when an automated employment decision tool will be used in evaluating them, giving affected individuals at least basic awareness that such a tool is part of the process, even though the law doesn’t necessarily provide a formal right to appeal the resulting decision itself.
Why This Law Has Become an Influential Model
Because Local Law 144 was among the earlier, more specific and comprehensive local regulations directly addressing AI hiring tools, it has become a frequently referenced model in policy discussions and proposed legislation in other jurisdictions considering similar regulatory approaches, making it a particularly significant example within the broader, evolving landscape of AI hiring regulation.
Why This Matters Beyond New York City Specifically
Even for employers and AI hiring tool vendors not directly subject to this specific law, understanding its requirements matters because it illustrates the kind of specific regulatory approach — audits, public disclosure, and candidate notice — that other jurisdictions have considered or may consider adopting, making it a useful reference point for understanding where AI hiring regulation may be heading more broadly.
Bottom Line
New York City’s Local Law 144 requires covered employers to conduct independent bias audits of automated employment decision tools, publish the audit results, and notify candidates and employees when such tools are used — making it one of the most specific and influential examples of AI hiring regulation in the U.S. and a frequently cited model for similar legislative proposals elsewhere.
Go deeper
Frequently asked questions
What counts as an 'automated employment decision tool' under this law?
The law generally covers tools that use computational processes, including machine learning or AI, to substantially assist or replace human decision-making in hiring or promotion decisions, though specific technical definitions and coverage thresholds are detailed in the law and associated regulatory guidance.
Does this law apply to employers outside New York City?
The law's specific requirements generally apply to employers hiring for positions within New York City, meaning employers based elsewhere but hiring for New York City-based roles may still need to comply, depending on the specific circumstances of the hiring process.
Related questions
- Are employers required to disclose when AI is used in the hiring process?
- What laws currently regulate AI use in hiring decisions?
- How do companies audit their ai hiring tools for bias before deploying them?
- What happens legally if an ai hiring tool violates the americans with disabilities act?
- What is adverse impact analysis and why does it matter for ai hiring tools?
- Can an employer be sued for using biased AI hiring software?
Sources
- [1]Local Law 144 information — New York City Department of Consumer and Worker Protection
- [2]AI in employment guidance — U.S. Equal Employment Opportunity Commission
Written by Editorial Team
Last updated July 29, 2026
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