After months of delay, New York City has begun enforcing a law requiring employers to use algorithms to hire, hire or promote workers. Submit those algorithms to an independent audit — and publicizing the results. From one report: The law, the first of its kind in the country — New York City Local Law 144 — also requires companies that use these types of algorithms to disclose it to employees or job candidates. At a minimum, the reports should include the algorithms companies use, as well as the “average scores” of candidates of different races, ethnicities, and genders from those algorithms—they should make them public. Result, classification or recommendation. The law must also list the algorithm’s “impact ratios,” which are the average algorithm-assigned score of all people in a given category (eg, black male candidates) divided by the average score of people in the highest-scoring category. .
Non-compliant companies face fines of $375 for a first violation, $1,350 for a second violation, and $1,500 for a third violation. Every day a company violates the law and uses an algorithm, it becomes a different violation — like failing to provide enough information. Importantly, the scope of Local Law 144, passed by the City Council and enforced by the NYC Department of Consumer and Labor Protection, extends beyond NYC-based workers. As long as a person has or applies for a job in the city, they are eligible for protection under the new law.