Introduction
In recent years, the regulation of artificial intelligence (AI) in employment practices has gained significant attention. New York City has taken a pioneering step by enacting legislation to address bias in AI-driven hiring processes, setting a precedent for other jurisdictions.
Description
In July 2023 [3], New York City enacted a local law known as the Automated Employment Decision Tool Legislation, which regulates the use of artificial intelligence in employment decisions [3]. This law mandates bias audits for automated employment decision tools prior to their implementation and requires that candidates or employees residing in the city be informed about the use of these tools in hiring or promotion evaluations. As a result, New York City stands as the only jurisdiction in the US to directly address bias in AI hiring practices.
Additionally, a proposal has been announced to revise WARN Act regulations [1], mandating that employers disclose the role of AI in decisions related to mass layoffs [1], marking a significant shift in legislative perspectives on AI’s influence in workforce management [1]. However, the implementation of the Automated Employment Decision Tool Legislation faces challenges due to a lack of guidance on selecting qualified auditors.
Meanwhile, several states [1], including California [1] [3], Colorado [1], Massachusetts [1], and Virginia [1], are actively considering or have enacted laws pertaining to AI in employment [1]. These laws typically encompass requirements for transparency [1], impact assessments [1], and anti-discrimination measures [1], indicating that employers utilizing AI in recruitment and workforce management should brace for increased scrutiny [1].
Conclusion
As the regulatory environment surrounding AI in employment continues to evolve [2], employers are advised to remain vigilant and proactive in adapting to these changes to ensure compliance and promote equitable hiring practices [2]. The initiatives in New York City and other states highlight a growing recognition of the need for oversight in AI applications, which could lead to more widespread legislative action across the country.
References
[1] https://www.forbes.com/sites/alonzomartinez/2025/04/18/background-screening-compliance-updates-employers-need-in-q1-2025/
[2] https://www.restack.io/p/bias-mitigation-answer-employment-discrimination-laws-cat-ai
[3] https://www.jdsupra.com/legalnews/to-ai-or-not-to-ai-the-use-of-ai-in-3066964/
