Starting January 1, 2023, New York City employers that utilize artificial intelligence (“AI”) decision-making tools in their hiring practices will need to provide notice to applicants of the technology and conduct independent bias audits to ensure that these tools do not have a discriminatory impact on candidates. This new law, which is aimed at eliminating bias in automated employment decisions, is the first of its type in the United States.
The New York City Department of Consumer and Worker Protection (“DCWP”) has issued proposed regulations in connection with the law, and the DCWP will be holding a public forum to discuss the proposed regulations on October 24, 2022.
Employers and employment agencies should not wait until the regulations are finalized to develop a catalog of AI-driven tools they use for assisting in hiring and promotion decisions and working with vendors and technology stakeholders to develop the means for independent audits that are sufficiently linked to the jobs and job classes for which the organization anticipates hiring.
To read the full client alert, please visit our website.
As previewed in our April 5, 2022, client alert (New York Employers, Take Note! Two New Laws Effective in May | Blank Rome LLP), New York City has rolled back to November 1, 2022, the effective date of its amendment to the New York City Human Rights Law (“NYCHRL”) that will require the City’s private employers to provide a minimum and maximum salary range for jobs when advertising employment opportunities.
The City delayed the effective date in order to give employers a six-month extension of time to come into compliance. The amendment will require employers that are advertising job openings for positions performed in New York City to include the salary range (both a minimum and maximum amount) being offered for the position in the advertisement.
New York businesses face not one, but two new laws which significantly impact employers and take effect next month. The first requires employers in New York City to provide salary ranges when advertising employment opportunities (effective May 15, 2022). The second mandates that New York employers provide prior notice and posting if they intend to monitor employee telephone, e-mail, or Internet usage (effective May 7, 2022). Read below for important summaries of the new laws and their impact on your business.
New York City Council passed legislation on December 15, 2021, that would require employers in NYC (who have at least four employees) to include the minimum and maximum salary range for a position in any posting/advertisement for a job, promotion, or transfer opportunity. The bill will go into effect 120 days after it becomes law, unless the new mayor, Eric Adams, vetoes it by January 14, 2022.
The bill makes it a discriminatory practice under the NYC Human Rights Law (“NYCHRL”) to fail to include such salary information in a posting/advertisement. As set forth in the text of the bill:
It shall be an unlawful discriminatory practice for an employment agency, employer, employee or agent thereof to advertise a job, promotion or transfer opportunity without stating the minimum and maximum salary for such position in such advertisement. In stating the minimum and maximum salary for a position, the range may extend from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity.
The bill gives the NYC Commission on Human Rights the power to issue rules to implement (and hopefully further clarify) the new law. Among the issues that need clarity are the definition of “salary” and whether the requirement applies to all jobs advertised in New York City or only for postings for jobs physically located in NYC. While the “summary” of the bill on the NYC City Council website (here) references it applying to “any position located within New York City,” NYC guidance has in the past expanded on the interpretation of the law.