New York City Passes Bill to Address Bias in AI-Based Hiring Tools

The New York City Council has passed a bill meant to address bias in AI-based hiring tools.

The bill was introduced in February 2020; the NYCC passed it on Nov. 10. New York City Mayor Bill de Blasio has until Dec. 10 to sign the bill, veto it, or allow it to become law without being signed. If the bill is enacted, it will go into effect on Jan. 1, 2023. That gives vendors, employers, and employment agencies over a year to make sure their tools meet the bill's standards.

"This bill would require that a bias audit be conducted on an automated employment decision tool prior to the use of said tool," the NYCC says in its summary of the proposal. "The bill would also require that candidates or employees that reside in the city be notified about the use of such tools in the assessment or evaluation for hire or promotion, as well as, be notified about the job qualifications and characteristics that will be used by the automated employment decision tool."

The Associated Press reports that this bill is specifically meant to address racial or gender bias; it doesn't include protections against bias related to disabilities or age. It does allow job applicants to request an alternative review process, however, including the option of having another human being review their their application. Employers and employment agencies that fail the bill's mandatory bias audits will be subject to a fine up to $1,500 per violation.

It might not be difficult for a particular AI-based hiring tool to pass those audits, though, because they're supposed to be administered by the vendors themselves. (Which could explain why the AP says "there’s been little vocal opposition to the bill from the AI hiring vendors most commonly used by employers.") The vendors wouldn't be the ones paying the fines, either, so they only have to worry about the indirect penalty of potentially losing customers if they fail a bias audit.

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But this is just a first step towards addressing the potential of algorithmic bias in the hiring process. Other cities, states, and countries are free to introduce their own requirements. New York City is the first to take action, however, and other legislators can learn from the city's efforts.