Navigating NYC Local Law 144: A Review for Workplace Investigators
In today's rapidly evolving workplace landscape, artificial intelligence (AI) is gaining a foothold in various HR processes. For workplace investigators, this ushers in a fresh realm of challenges. With NYC's groundbreaking Local Law 144, the game has changed.
Here's an in-depth guide to understanding and navigating this crucial piece of legislation.
Understanding NYC Local Law 144
What is it?
NYC Local Law 144, effective from July 5, 2023, was introduced in response to the increasing adoption of AI tools in human resource operations. The law mandates a "bias audit" for Automated Employment Decision Tools (AEDTs) to ensure their fairness and equity in employment decisions. At its core, this law addresses the use of AEDTs in the hiring, firing, and promotion processes. These tools, driven by AI, machine learning, or data analytics, assist or replace human decision-making in these employment-related decisions.
Remember that bias audits are required under the legislation even when an AEDT is not being used for a final hiring decision - the audits are required if AEDT is used to “screen” candidates in the hiring process.
Who does it apply to?
The law is specifically applicable to employers and employment agencies using AEDTs in their hiring or promotion processes involving New York City residents. Regardless of where the employer is based, if a NYC resident's employment decision involves an AEDT, NYC 144 comes into play.
Why NYC Local 144 Matters to Workplace Investigators
When AI is implicated in a workplace issue, especially concerning NYC residents, Local NYC 144 may become pertinent, especially if part of the complaint has to do with claims of disparate impact or failure to comply with the regulation. So, if this is the case, what do workplace investigators need to know?
Type of Data Implicated: AI thrives on data. Understanding the kind of data the AEDT uses can provide insights into potential areas of bias or discrepancies. You may be able to determine some of these answers by reviewing the bias audit.
Witnesses in the AI Realm: Beyond traditional human witnesses, in AI-centric issues, those who deploy or audit these tools can be vital witnesses. Their knowledge can elucidate the AEDT's design, function, biases, and other intricate details. Also, consider the individuals involved with completing the AI bias audit as potential witnesses.
Access and Ownership of Data: If you’re going to need to review data, then you need to discern where the data resides – be it local servers, cloud-based platforms, or elsewhere. Complications may arise when the employer uses a third-party vendor for conducting certain AI-related tasks, especially if the vendor is the one with ownership of the data. The service agreement between the employer and the AEDT provider can offer crucial insights here, as well as insight for the investigator as to how they may access that information (depending on the ownership).
Potential Biases and their Origins: While AI tools are designed to be objective, biases can creep in based on the data they're trained on or the design of their algorithms. Scrutinizing the AEDT's training data and the results of its bias audit can offer significant insights. This may require engaging an AI technology expert if analyzing this data is outside of the investigator’s knowledge base.
Compliance and Violations: As the workplace investigation progresses, a comprehensive understanding of NYC 144’s various requirements, including bias audits, data retention, and public disclosure, can help in identifying potential areas of non-compliance, in case those are relevant to the investigation.
Ensuring Compliance and Identifying Violations
Bias Audit Compliance: During your investigation, it's crucial to determine if the AEDT underwent a bias audit as mandated by the specified regulations. In this regard, reference the regulations to guide investigators on the specific locations and details they should look for, given that the regulations mandate the public posting of these results.
Notification Procedures: NYC 144 necessitates that employers notify employees and potential candidates about AEDT usage. Part of the investigation may require verification that these notifications were dispatched timely and contained all the requisite information required under the regulation.
Final Thoughts
The integration of AI into employment processes is unchartered territory for many workplace investigators. With NYC Local Law 144, there's a structured framework in place. By understanding and adeptly navigating this law, investigators can ensure thoroughness and fairness in their pursuits, even in this new AI-driven employment era.
Questions about artificial intelligence in the workplace or as part of a workplace investigation? Moxie Mediation can help. Contact us today!