What New York City's Rules On Automated Hiring Tools Require
The city regulates the use of automated tools in hiring decisions. If you screen candidates with software, this applies to you.
New York City has adopted rules governing automated employment decision tools — software that substantially assists or replaces human judgement in hiring or promotion. Employers using such tools for positions in the city carry obligations that many still do not realize apply to them.
What counts as a covered tool
The definition turns on function rather than on branding. A system does not need to be described as artificial intelligence to be covered; what matters is whether it derives a score, classification or recommendation that substantially assists a decision about a candidate or employee.
Resume screening that ranks applicants, and assessment software that scores candidates, generally fall within scope. A spreadsheet a recruiter uses to record their own judgements generally does not.
The bias audit
Covered tools must undergo an independent bias audit before use, and within a defined period preceding it. The audit examines whether selection rates differ across categories, and a summary of the results must be made publicly available.
The requirement is for an independent auditor. A vendor's own assessment of its own product does not satisfy it, which is the point most commonly misunderstood when an employer relies on a supplier's assurances.
Notice to candidates
Candidates must be notified in advance that an automated tool will be used, told what qualifications and characteristics it assesses, and given information about the data collected and the retention policy. Notice must come far enough ahead to be meaningful.
Where employers go wrong
The common failures are procurement failures. An employer adopts an applicant tracking system with scoring built in, never classifies it as a covered tool, and never commissions an audit.
The practical step is an inventory: list every system touching hiring, ask each vendor in writing whether it produces a score or ranking, and get the audit position documented before the tool is switched on.
