December 1, 2022

Volume XII, Number 335

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New York City Set To Regulate Employment Decisions Made By AI

Beginning January 1, 2023, New York City will restrict employers from using artificial intelligence to make employment decisions unless they follow certain guidelines. The local law applies to employment decisions made “within the city” regarding job applicants and promotion decisions.

The law contains two major provisions. First, employers must provide notice to evaluatees ten business days before employing an AI system, provide them an opt-out, and list the qualifications and characteristics used by the system. Second, the system itself must be audited for bias annually. The results of the audit must be publicly posted on the employer’s website. Employers are also required to publicly post or make available upon request the sources of data used by the system and the organization’s data retention policy.

Putting it Into Practice: Organizations that use AI to make employment decisions in New York City should take time before January 1 to review these systems and develop appropriate notice and choice procedures.

Copyright © 2022, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XII, Number 271
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About this Author

Kari Rollins Intellectual Property Lawyer Sheppard
Partner

Kari M. Rollins is a partner in the Intellectual Property Practice Group in the firm's New York office.

Areas of Practice

Ms. Rollins focuses her practice on privacy and complex commercial litigation matters. She has successfully represented clients in the financial services, audit and accounting, food services, retail, and fashion industries before state and federal courts, as well as in front of state attorneys general, federal regulators, and U.S. and international commercial arbitration forums....

212.634.3077
Associate

Charles Glover is an associate in the Intellectual Property Practice Group in the firm's New York office.

Areas of Practice

Charles' practice focuses on breach response, data privacy law, and intellectual property disputes. His representations cover a variety of clients, including national banks, domestic airlines, and entertainment companies.

Charles’ solutions-oriented focus and diverse experience allow him to develop and implement dynamic strategies tailored to meet his clients’ needs. He has helped clients of all sizes and stages...

212.896.0679
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