New York employers face new restrictions on use of artificial intelligence when hiring
United States: New York employers face new restrictions on the use of artificial intelligence when hiring
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As advancements in technology have given employers artificial intelligence (AI) -based tools to help them with the hiring process, New York City has taken note. Recently, New York City passed a new measure restricting the use of artificial intelligence (AI) when hiring.
The law, which will come into force on January 1, 2023, prohibits the use of AI-based recruiting tools, unless those tools have been audited for bias. The objective of this audit will be to ensure that the AI-based tool does not lead to disparate results on the basis of race or gender. Once the law comes into force, employers using AI-based recruiting tools will be required to notify applicants that the AI-based tool is being used and identify candidates with the qualifications and characteristics of the job that the program will examine. Prospective employees will have the right to opt out and have a human review their application instead.
Employers themselves will not be responsible for carrying out the audit; this responsibility rests with the supplier who administers the hiring tool. However, employers will be subject to liability for violations of the law (including both the verification requirement and the notification requirement) for $ 500 for a first violation and up to $ 1,500 for subsequent violations.
In light of the effective date of January 1, 2023, employers in New York City should use the coming year to review their use of AI-powered recruiting tools and to ensure that their use of AI in recruiting is legal.
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