The Department of Consumer and Worker Protection (“DCWP” or “Department”) is adding rules to implement new legislation regarding automated employment decision tools (“AEDT”). Local Law 144 of 2021 prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit within one year of the use of the tool, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates.
These rules establish that a bias audit of an AEDT must calculate the selection rate for each race/ethnicity and sex category that is required to be reported on to the U.S. Equal Employment Opportunity Commission (“EEOC”) pursuant to the EEO Component 1 report, and compare the selection rates to the most selected category to determine an impact ratio. These calculations are consistent with Section 1607.4 of the EEOC Uniform Guidelines on Employee Selection Procedures. See 29 C.F.R. ยง 1607.4. These rules generally clarify obligations of employers and employment agencies under the new law.