New York City began enforcing Local Law 144 on July 5, 2023. This law regulates the automated employment decision tools (AEDT) in New York City. It bans New York employers and employment agencies from using AEDTs when making decisions concerning promotion, hiring, or screening for these processes. 

However, employers can use AEDTs if they undergo bias audits and post the required notices. Unfortunately, the regulations and exceptions have proven complicated for many employers. This confusion spurred the New York City Department of Consumer and Worker Protection to release guidance on the law.

Here is a summary of Local Law 144 and some topics covered by the FAQ.

How Far the Law Reaches

According to Local Law 144, it covers AEDTs used “in the city.” Though used throughout the text, its interpretation remained open, so the FAQ clarified “in the city” as requiring one of the following:

• Part-time or full-time, the job’s location is an office in NYC;
• A fully remote job with an associated location in an office in NYC;
• The employment agency using AEDT is in NYC; if located outside of NYC, then one of the above bullets proves true

Bias Audits Explained

According to Local Law 144, employers must conduct bias audits to use AEDTs. They must also publish a summary of the most recent audit, showing when the employer started using it. However, the law provides no specific actions employers must take after receiving the audit’s results.

As such, the FAQs explained compliance requirements for employment agencies and employers. It described the anti-discrimination laws and how to comply with them after receiving the audit results.

Demographic Information

The FAQs also covered what employers can do if demographic information becomes unavailable or lacks significant historical data. In these cases, employers and employment agencies can use test data when conducting bias audits. Otherwise, they may use the historical data of other agencies or employers.

However, the law issued stipulations when relying on this data. The employer or employment agency must supply the independent auditor conducting the bias audit with historical data from their AEDTs. Otherwise, they may use this data if this is the employer’s or agency’s first time using AEDT. In addition, they cannot impute or infer demographic information when unavailable.

Vendors

AEDT vendors cannot perform bias audits on their devices. However, they may hire an independent auditor to review their equipment. This action is optional for the vendors, as they hold no responsibility for guaranteeing bias audited tools. The employer or employment agency maintains responsibility for ensuring AEDTs undergo bias audits.

The FAQs provide more information for employers and employment agencies within Local Law 144’s reach. Those who must comply should work with an experienced background screening company to ensure compliance with the AEDT law. The right provider will keep them up-to-date, comply with all relevant employment laws, and deliver accurate reports.

Keep your business up to date on new laws and regulations with JDP’s free news resources. Contact a sales rep today.

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Residents of New York now have various employment protections when using cannabis. However, the law provides several exceptions in its provisions. As such, you should know about these exceptions and more about the law if they apply to your situation.

In most cases, the New York Labor Law protects employees when using recreational cannabis in the private sector. The “private sector” means it’s a company not run by the government. You can use marijuana while off-duty, off your employer’s property, and not use your employer’s equipment.

You can review the limitations and exceptions to the New York Labor Law here. Otherwise, it prevents employers from the following actions based on marijuana use:

• Refusing to hire, license, or employ you
• Terminate your employment
• Discriminate against you in promotion, terms of employment, compensation, or privileges.

The New York Labor Law also protects job applicants who use cannabis for medical or recreational purposes. For example, most employers cannot require applicants to undergo marijuana testing. However, it does allow drug testing for the following exceptions:

• “Required by the U.S. Department of Transportation under 49 C.F.R. Part 40 or related state and local rules (e.g., flight crew and train dispatchers) 
• Required by the federal government as a condition of receiving a contract or grant; 
• Required by federal or state law ‘for purposes of safety or security;’ 
• A collective bargaining agreement includes terms related to pre-employment drug testing of job applicants; 
• The position falls into one of these categories: 
  • Police officers  
  • Peace officers 
  • Law enforcement or investigative positions at the N.Y.C. Department of Investigation          
  • Positions covered by New York City Building Code § 3321, which covers certain workers at building sites  
  • Positions covered by New York Labor Law § 220-h, which covers certain workers at public work sites 
  • Positions requiring a commercial driver’s license 
  • Positions supervising or caring for children 
  • Positions supervising medical patients”

Cannabis users have received many workplace protections. One such protection prevents most private sector employers from conducting pre-employment drug testing for cannabis. However, the law does not prevent employers from banning certain conduct due to marijuana use. Employers can still discipline or terminate you in the following situations:

• “An employer must take such action by state or federal statute, regulation, or ordinance, or other state or federal governmental mandate;
• The employer would violate federal law;
• The employer would lose a federal contract or federal funding;
• The employee, while working, manifests specific articulable symptoms of cannabis impairment that decrease or lessen the employee’s performance of the employee’s tasks or duties;
• The employee, while working, manifests specific articulable symptoms of cannabis impairment that interfere with the employer’s obligation to provide a safe and healthy workplace as required by state and federal workplace safety laws.”

Should you use marijuana, review your company’s policies to ensure you understand what your employer can and cannot do. Consider asking potential employers about their pre-employment drug screenings before applying for jobs. Finally, you should run a self-background check before applying for jobs or promotions. A self-check informs you what employers could see in your background checks, preparing you to explain any negative information.

Try running a self background check today and give yourself a head start on your next job opportunity.

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