Compliance

Automated Employment Decision Tool (AEDT)

AI system used in hiring or promotion that requires bias audits under NYC Local Law 144.

Definition

An Automated Employment Decision Tool (AEDT) is defined under New York City Local Law 144 as any computational process derived from machine learning, statistical modeling, data analytics, or artificial intelligence that issues a simplified output (score, classification, or recommendation) used to substantially assist or replace discretionary decision-making for employment decisions.

Key requirements under NYC Local Law 144:

  • Annual bias audit by an independent auditor before use
  • Public posting of audit results including impact ratios by sex and race/ethnicity
  • Notice to candidates at least 10 business days before use
  • Information about data collected and retention policies

This law represents one of the first US regulations specifically targeting AI in employment decisions and has influenced similar legislation in other jurisdictions.

Sources

  • NYC Local Law 144
  • DCWP Rules