Tag: Use of AI

New York Adopts New Regulations Governing the Use of AI in Hiring June 9, 2023 Beginning on July 5, 2023, the Department of Consumer and Worker Protection in New York City will start to enforce a new ordinance. This law will regulate how employers can use artificial intelligence or automation when making hiring decisions. The Department published the final regulations of this rule on April 5, 2023. This law requires several actions from employers using automated tools to avoid civil penalties. It refers to automated employment decision tools (AEDTs) as defined by § 20-870 of the Code that described the phrase "to substantially assist or replace discretionary decision making." According to the description, this phrase encompasses the following: (i) To rely solely on a simplified output (score, tag, classification, ranking, etc.), with no other factors considered; (ii) To use a simplified output as one of a set of criteria where the simplified output is weighted more than any other criterion in the set; or (iii) To use a simplified output to overrule conclusions derived from other factors, including human decision-making. The new law, NYC 144, will prohibit employers from using automated decision-making tools in the hiring process. However, it includes exceptions for employers who subject the tool to annual bias audits. In addition, employers must publish a summary of the audit for the public to see. They must also supply a copy of the tool to applicants and employees subjected to screening by it. Employers who violate the law can expect civil penalties. Unfortunately, the ordinance has not clarified the scope of who falls under its jurisdiction. Until defined, many suspect it concerns New York City residents applying for work or promotions only. Employers cannot continue using an AEDT if more than a year has passed since the last bias audit. This ban includes using it for hiring or promoting candidates, moving applicants forward in the hiring process, categorizing candidates into groups, and more. Otherwise, employers using AEDTs must submit to bias audits that do the following: (1) Calculate the selection rate for each category; (2) Calculate the impact ratio for each category; and (3) The calculations required in paragraphs (1) and (2) of this section must separately calculate the impact of the AEDT on: Sex categories (i.e., impact ratio for selection of male candidates vs. female candidates), Race/Ethnicity categories (e.g., impact ratio for selection of Hispanic or Latino candidates vs. Black or African American candidates) iii. intersectional categories of sex, ethnicity, and race (e.g., impact ratio for selecting Hispanic or Latino male candidates vs. Not Hispanic or Latino Black or African American female candidates). (4) Where an AEDT classifies candidates for employment or employees considered for promotion into groups (e.g., leadership styles), each group must include the calculations in paragraphs (1), (2), and (3) of this subdivision. Employers must notify involved candidates about using AEDTs at least ten business days before assessing and evaluating them. This notification applies to candidates in the hiring and promotion processes. In addition, the notice should clearly state what the AEDT will analyze. For example, it must explain the job qualifications and characteristics, the data source, the type, and retention policies reviewed by the AEDT. Employers must also inform the candidate about the right to request an alternative selection process or accommodations. This law allows employers several options for delivering the notice. For example, employers may include it in the employment section of their website as long as they post it clearly and conspicuously. Otherwise, they can present it to the candidates in the job posting, an email, or by mail. Employers who violate the ordinance can expect a $375 civil penalty per violation on the first day. However, subsequent infractions on the following days will increase from $500 to a maximum of $1,500 each. An example violation includes failing to notify candidates of the AEDT. In addition, failing to comply with the bias audit requirements counts as a separate daily violation. Due to the costs of these penalties, employers should review their screening policies and ensure they have appropriate notices in place. Reviewing and making corrections as needed will ensure they comply with the new regulations, which take effect on July 5, 2023. Keep your business up to date on new laws and regulations with Pre-employ’s free news resources. Contact a sales rep today. Source

Tag: Use of AI

New York Adopts New Regulations Governing the Use of AI in Hiring

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