In December 2021, the New York City Council passed a novel, first-of-its-kind law addressing the use of artificial intelligence – specifically, automated employment decision tools – by businesses to make employment decisions. The law, which has the potential to seismically change how employers approach employment decisions, essentially bars businesses from using automated employment decision tools when making such decisions unless several criteria are first satisfied, including that the tool at issue has undergone an independent bias audit. After multiple delays, city regulators will begin enforcing the law on July 5, 2023. In response to this recent enforcement and the impact it will have on many employers, Reed Smith’s Labor & Employment team has detailed some common FAQs related to the decision.

If you have further questions, contact a member of the Labor & Employment team or the Reed Smith Lawyer with whom you normally work.