Legal Update

Oct 25, 2022

New York City’s Department of Consumer & Worker Protection’s Public Hearing on Proposed Rules Concerning Automated Employment Decision Tools Postponed -- New Date ANNOUNCED

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UPDATE:  A new hearing date has been set  for November 4th at 11:00 am. 

Seyfarth Synopsis: On October 24, 2022, New York City’s Department of Consumer & Worker Protection (“DCWP”) postponed its hearing scheduled for the same day regarding DCWP’s proposed rules regulating Local Law 144 of 2021 (“LL 144”).  LL 144, which regulates employers’ use of automated employment decision tools, including artificial intelligence, presently remains scheduled to go into effect January 1, 2023.  DCWP’s new hearing date is expected to follow.

DCWP attempted to hold a hearing on October 24, 2022 to allow public comment regarding its proposed rules that would provide guidance to employers and employment agencies who use automated employment decisions tools, such as artificial intelligence and machine learning, as defined by LL 144.  Unfortunately, the hearing was postponed to a later date that is yet to be announced. A DCWP spokesperson noted the comment period would be extended and that DCWP would schedule a new hearing date.

The postponement comes weeks from the new NYC law’s January 1, 2023 effective date. The law, the first of its kind in the United States, has garnered national attention. On September 23, 2022, the Department issued proposed rules seeking to clarify certain aspects of LL 144 and offered the public an opportunity to comment. Certain comments have been posted by the DCWP here and include comments from various stakeholders, including computer scientists, healthcare facilities, and artificial intelligence tools vendors.

Seyfarth submitted its own comments on the proposed rules emphasizing parts of the law that require further clarification, including providing more precise definitions for critical terms and clarifying the scope of bias audits. Seyfarth’s comments also urge the DCWP to consider deferring the enforcement date of the new law. For further reading about the passage and history of LL 144, our past coverage can be found here.

Seyfarth will continue to monitor any developments with New York City’s artificial intelligence in hiring restrictions and provide updates when available.