The Impact of Artificial Intelligence on Hiring and Potential for Discrimination in NYC

Artificial intelligence is reshaping how companies hire — but it’s also raising new concerns about fairness and discrimination. In New York City, a groundbreaking law now regulates the use of automated hiring tools. If you’re applying for jobs in NYC, understanding these rules can help you recognize bias and know your rights.

What Is NYC Local Law 144?

In July 2023, New York City began enforcing Local Law 144, the first law in the country to regulate Automated Employment Decision Tools (AEDTs). These are AI-driven systems that help employers screen résumés, rank candidates, or assess applicants in video interviews.

The law requires employers to:

• Conduct annual bias audits of their AI hiring tools.
• Publish a summary of audit results on their websites.
• Provide notice to candidates if an automated tool will be used in the hiring process.
• Allow candidates to request alternative accommodations if they don’t want to be evaluated by AI.

This law recognizes that while AI can streamline hiring, it can also unintentionally reinforce discrimination.

Why AI Can Lead to Discrimination

AI tools learn from existing data, and if that data reflects historic bias, the algorithm may replicate or even amplify it. Examples include:

• Screening models that down-rank candidates based on gendered language in résumés.
• Algorithms that inadvertently favor graduates of certain schools, creating racial or socioeconomic disparities.
• Video interview software that penalizes candidates with accents, disabilities, or atypical speech patterns.

For job seekers, the risk is that you may be unfairly filtered out before a human ever reviews your application.

Bias Audit Requirements Under Local Law 144

To combat these risks, NYC requires employers using AEDTs to submit the technology to an independent audit at least once a year. These audits examine:

• Selection rates across gender, race, and other protected categories.
• Impact ratios that reveal whether one group is disproportionately screened out.
• Compliance with the law’s definition of fairness and transparency.

Audit results must be made public, allowing applicants to verify whether an employer has complied with the law before applying.

What This Means for Applicants

If you’re applying for a job in New York City and AI is part of the process, you have necessary rights:

• Advance notice– Employers must inform you before using an AI tool in the hiring process.
• Access to audit results–You can review published summaries of bias audits to see how the tool performs.
• Right to request accommodation–If you prefer not to be evaluated by AI, you can ask for an alternative assessment.

Applicants should also keep records of all application materials, including emails and notices. If you suspect discrimination, this documentation could be critical.

Tips for Navigating AI Hiring in NYC

• Ask questions early–If you receive notice that AI will be used, request details on how it will evaluate candidates.
• Check for audit postings–Look on the employer’s website for the required bias audit summary. Missing audits may be a red flag.
• Prepare for AI-driven assessments – For video or online tests, practice in similar environments to minimize technical disadvantages.
• Document irregularities–If you believe you were unfairly screened out, save all correspondence and application records.

AI has the potential to make hiring more efficient and consistent. But unchecked, it can also reinforce bias and block qualified candidates. Local Law 144 is New York City’s attempt to strike that balance, demanding transparency, requiring bias audits, and giving applicants choices in how they are evaluated.

Talk to an Employment Lawyer About AI Hiring Discrimination in NYC

If you believe AI unfairly cost you a job opportunity, you may not be alone — and you may have legal remedies. The rules surrounding AI hiring discrimination in NYC are still developing, but employees and applicants already have rights under Local Law 144 and longstanding anti-discrimination statutes. Contact Lipsky Lowe today to learn how we can help protect your rights in the hiring process.