New York City Local Law 144 of 2021 — Automated Employment Decision Tools

In short

Since 5 July 2023, NYC employers and employment agencies may not use an automated employment decision tool (AEDT) to screen candidates for hire or promotion unless the tool has had an independent bias audit within the past year, a summary of the audit is published on their website, and candidates are told at least 10 business days in advance that the tool will be used, what it assesses, and how to request an alternative process. The audit reports selection or scoring rates by sex and race/ethnicity.

Key dates

1. Jul 5, 2023✓Enforcement began
2. Dec 2, 2025✓NY State Comptroller audit reported weak enforcement by DCWP

What you have to do

• Identify any screening or ranking software that substantially assists hiring or promotion decisions for NYC roles.
• Commission an independent bias audit every 12 months covering impact ratios by sex, race/ethnicity and their intersections.
• Publish a summary of the latest audit results and the tool's distribution date on your website.
• Notify candidates at least 10 business days before use, including the job qualifications assessed and how to request an alternative process or accommodation.
• Keep the data-retention notice and audit history available on request.

Penalties

Civil penalties of $500 for a first violation and $500–$1,500 for each subsequent violation; each day a tool is used without compliance, and each missing notice, counts as a separate violation. Enforced by the NYC Department of Consumer and Worker Protection.

Related lessons

• Level 1The world map of AI rules: EU, US patchwork, Canada, standards8 min
• Level 1Why it matters: what enforcement actually looks like7 min
• Level 2Risk classification: prohibited, high-risk, limited, minimal8 min
• Level 2Transparency and disclosure: telling people AI is involved7 min
• Level 3Human oversight that actually works6 min
• Level 3Bias and fairness testing, including bias audits8 min
• Level 3Vendors and contract clauses6 min
• Level 4Training and AI literacy programmes6 min
• Level 5Management systems in practice: ISO 42001, NIST AI RMF and continuous assurance8 min
• Level 5Preparing for enforcement, investigations and appeals7 min
• Level 5Staying current: key dates ahead and how to track change6 min

Real cases

• Settlement2023 · US-federal
  EEOC v. iTutorGroup — hiring software that auto-rejected older applicants

  Settlement announced 9 August 2023 (EEOC v. iTutorGroup, Inc., No. 1:22-cv-02565, E.D.N.Y.). iTutorGroup agreed to pay $365,000 to rejected applicants, adopt new anti-discrimination policies and training, stop asking for birth dates, invite previously rejected applicants to re-apply if US hiring resumes, and accept EEOC monitoring for five years. The company did not admit wrongdoing.

• Lawsuit2025 · US-federal
  Mobley v. Workday — collective action over AI hiring screens (ongoing)

  Ongoing as of September 2026. In July 2024 the court refused to dismiss the case, accepting the agent theory. On 16 May 2025 it conditionally certified a nationwide ADEA collective of applicants aged 40+ rejected via Workday's platform since September 2020; the opt-in notice period closed on 7 March 2026. In June 2026 the court let California FEHA claims and a proxy-discrimination disability claim proceed. No trial date, judgment or settlement has been reported.

Industries where it matters

• 🧑‍💼 HR & hiring