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What is NYC Local Law 144?

AI and people intelligence

NYC Local Law 144 is a New York City law that regulates automated employment decision tools (AEDTs) in hiring and promotion. Employers and employment agencies may not use a covered tool to screen candidates or employees unless it had an independent bias audit within the past year, a summary of results is public, and required notices were given.

How NYC Local Law 144 is defined

Local Law 144 of 2021 was enacted on December 11, 2021, and took effect on January 1, 2023. It adds sections 20-870 to 20-874 to the New York City Administrative Code. The NYC Department of Consumer and Worker Protection (DCWP) enforces the law and its rules, and began enforcement on July 5, 2023. This summary reflects the law, DCWP's rules, and DCWP's guidance as of November 11, 2026. This page is a general overview, not legal advice.

The law defines an automated employment decision tool as "any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that impact natural persons." Tools such as spam filters, spreadsheets, and databases are excluded.

DCWP's rules explain that "substantially assist or replace discretionary decision making" means one of the following:

  • Relying solely on a simplified output, such as a score, tag, classification, or ranking, with no other factors considered.
  • Using a simplified output as one of a set of criteria, where it is weighted more than any other criterion.
  • Using a simplified output to overrule conclusions derived from other factors, including human decision-making.

An employment decision means screening candidates for employment or employees for promotion within the city. According to DCWP's FAQ, the law applies when the job is located at an office in New York City at least part time, when a fully remote job is associated with an NYC office, or when the employment agency using the tool is located in NYC.

The law sets these requirements for employers and employment agencies:

  • Bias audit: The tool must have had a bias audit, an impartial evaluation by an independent auditor, no more than one year before use. At minimum, the audit calculates selection or scoring rates and impact ratios across sex, race/ethnicity, and intersectional categories.
  • Published results: Before use, the employer must post the date and a summary of the most recent audit, along with the tool's distribution date, and keep it posted for at least six months after its latest use.
  • Notice: Candidates and employees who live in NYC must be told, at least 10 business days before use, that a tool will be used and which job qualifications and characteristics it will assess. The notice must include instructions for requesting a reasonable accommodation under other laws.
  • Data information: If it is not on the employer's website, information about the type of data collected, its source, and the data retention policy must be provided within 30 days of a written request.

Violations carry civil penalties of up to $500 for a first violation and $500 to $1,500 for each later violation. Each day a tool is used in violation counts as a separate violation.

Why NYC Local Law 144 matters for talent teams

Coverage depends on how a tool is used. DCWP's FAQ says the requirements apply to assessing people who have applied for a specific position or employees being considered for promotion. They do not apply to using a tool to scan a resume bank, conduct outreach to potential candidates, or invite applications.

DCWP's guidance also places responsibility with the employer. The vendor that created a tool is not responsible for its bias audit, though a vendor can have an independent auditor audit its tool. Employers and employment agencies remain responsible for making sure an audit was done before they use the tool. The law does not require specific actions based on audit results, but federal, state, and city anti-discrimination laws still apply.

Enforcement is getting attention. A December 2025 audit by the New York State Comptroller found that DCWP's complaint process and enforcement approach had gaps and made recommendations to strengthen them. For talent teams hiring in New York City, the practical starting point is knowing which tools score, rank, or classify applicants, and how much weight people give those outputs. Other states have their own rules; AI hiring laws in 2027 covers Colorado, Connecticut, and California.

How Findem approaches NYC Local Law 144

Findem's platform supports human judgment by making initial candidate recommendations, and it leaves final hiring actions to people. Findem states that it is not intended to be used as an automated employment decision tool. Its AI does not reject candidates or make hiring decisions.

Findem's employment fairness controls include disparate-impact testing and at least annual independent bias audits. Its most recent third-party bias audit, conducted by Warden AI, returned fairness scores at or near parity across every demographic group tested, and the audit summary is public. Whether Local Law 144 applies to a particular use of any tool is a question for each employer and its counsel. Read more in Responsible AI at Findem.

Further reading

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Frequently asked questions.

Employers and employment agencies that use an automated employment decision tool in New York City to screen candidates for employment or employees for promotion. DCWP's guidance says this covers jobs at an NYC office at least part time, fully remote jobs associated with an NYC office, and employment agencies located in NYC.

A computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output, such as a score, classification, or recommendation, used to substantially assist or replace discretionary decision making. DCWP's rules say that means relying solely on the output, weighting it more than any other criterion, or using it to overrule other conclusions.

It is an impartial evaluation by an independent auditor, done no more than one year before the tool is used. At minimum, it calculates selection or scoring rates and impact ratios across sex, race/ethnicity, and intersectional categories. Employers must post a summary of the results and the tool's distribution date.

According to DCWP's FAQ, the requirements do not apply when a tool is used to scan a resume bank, conduct outreach to potential candidates, or invite applications. They apply to assessing people who have applied for a specific position or employees being considered for promotion. Check with counsel for your situation.

Findem states that its platform is not intended to be used as an automated employment decision tool. Its AI makes initial candidate recommendations, does not reject candidates or make hiring decisions, and leaves final hiring actions to people. Whether the law applies to a particular use is a question for each employer and its counsel.