As the adoption of AI grows, so does the need for ethical and regulatory oversight. For companies operating in New York City, Local Law 144 establishes a critical benchmark for fairness in hiring practices by requiring bias audits for Automated Employment Decision Tools (AEDTs). ITACA_144 is designed to meet this need, offering a seamless, reliable solution for ensuring compliance while promoting transparency and trust in AI-driven decision-making.
What Is NYC Local Law 144?
New York City’s Local Law 144 is one of the first regulations in the U.S. to specifically address bias in AI systems used for hiring and promotions. Effective July 2023, the law mandates annual bias audits for AEDTs and requires organizations to publicly disclose audit results. The goal? To ensure that these tools operate fairly, without discriminatory outcomes based on factors like sex, race, or ethnicity.
For organizations leveraging AEDTs, compliance isn’t just a legal obligation—it’s an opportunity to demonstrate a commitment to fairness and inclusivity in hiring practices.
Companies using non-audited Automated Employment Decision Tools (AEDTs) in hiring can face fines of $375 to $1,500 per violation, meaning large company conducting 1,000 automated screenings without a proper audit could face fines exceeding $1.5 million annually.
Are you affected by this law?
New York City’s Local Law 144 of 2021 applies to employers and employment agencies that use Automated Employment Decision Tools (AEDTs) to assess candidates for hiring or promotion within New York City. The law mandates that such tools undergo an independent bias audit before use and that affected individuals receive prior notification.
Key Applicability Criteria:
1. Use of AEDTs:
- The law pertains to tools that utilize machine learning, statistical modeling, data analytics, or artificial intelligence to substantially assist or replace discretionary decision-making in employment decisions.
2. Geographical Scope:
- The law applies when the job location is an office in New York City, at least part-time.
- It also applies if the job is fully remote but associated with an office in New York City.
- Additionally, if the employment agency using the AEDT is located in New York City, or if the location of the employment agency is outside New York City but the job location criteria mentioned above are met, the law is applicable.
3. Employment Decisions:
- The law covers AEDTs used at any stage of the hiring or promotion process, including initial screenings, not just final employment decisions.
How ITACA_144 Helps Your Business
ITACA_144 is a specialized tool developed to simplify compliance with Local Law 144. Powered by advanced analytics, it performs comprehensive audits of AEDTs, delivering clear, actionable insights that help organizations identify and mitigate bias.
What Sets ITACA_144 Apart?
1. Automated Compliance Audits
ITACA 144 evaluates the fairness of AEDTs by analyzing impact ratios across sex, race, and intersectional categories. It measures selection and scoring rates, ensuring compliance with the thresholds set by Local Law 144.
2. Actionable insights
The platform doesn’t just flag potential issues—it provides detailed reports and metrics that guide teams in optimizing their AI systems for unbiased performance.
3. Trusted certification
Each ITACA 144 audit concludes with an “Eticas Certified” certification mark. This stamp of approval signals to clients, candidates, and stakeholders that your organization is committed to ethical, transparent practices.
4. Continuous monitoring
While Local Law 144 requires annual audits, ITACA_144 supports ongoing monitoring, helping businesses stay proactive in identifying and addressing potential biases.
Get started with ITACA_144
As AI continues to shape the future of hiring, compliance with regulations like Local Law 144 is essential—not just to avoid penalties but to build fairer, more inclusive workplaces.
Ready to take the next step? Contact us today to learn more about how ITACA_144 can help your organization meet and exceed the standards of NYC Local Law 144.