Establishes criteria for the use of automated employment decision tools; provides for enforcement for violations of such criteria.
Impact
The bill places stringent requirements on both deployers and developers of automated employment decision tools. Deployed tools must undergo annual impact assessments within one year of the law's effect, assessing the tool’s purpose, potential discrimination risks, and data processing practices. For developers, they are held accountable to provide intended use statements and risk evaluations prior to selling or licensing their tools. This substantial oversight is expected to enhance accountability and foster transparency in the automation of employment decisions, potentially reshaping the landscape of job recruitment and employee management in New York.
Summary
Bill S04394, introduced in the New York Senate, aims to regulate the use of automated employment decision tools by establishing definitions, requirements, and accountability measures to mitigate potential discrimination. The legislation introduces an Article 20-D into the labor law, focusing on artificial intelligence systems deemed as controlling factors in employment decisions such as hiring, promotions, and terminations. Emphasizing fair employment practices, the bill mandates that these tools should not be employed in any manner that violates existing anti-discrimination laws under Article 15 of the Executive Law.
Contention
While supporters view the bill as a necessary step to curb discrimination and ensure transparency in the increasingly automated hiring processes, opponents highlight potential burdens on businesses, particularly smaller entities that may find it challenging to comply with rigorous requirements. The bill’s framework, focusing on impact assessments and transparency, seeks to create a balance between fostering technological advancements in employment decisions and protecting workers’ rights, though it remains to be seen how such regulations will affect job markets and hiring practices across various industries.
Restricts the use by an employer or an employment agency of electronic monitoring or an automated employment decision tool to screen a candidate or employee for an employment decision unless such tool has been the subject of an impact assessment within the last year; requires notice to employment candidates of the use of such tools; provides remedies for violations.
Restricts the use by an employer or an employment agency of electronic monitoring or an automated employment decision tool to screen a candidate or employee for an employment decision unless such tool has been the subject of an impact assessment within the last year; requires notice to employment candidates of the use of such tools; provides remedies for violations.
Restricts the use by an employer or an employment agency of electronic monitoring or an automated employment decision tool to screen a candidate or employee for an employment decision unless such tool has been the subject of an impact assessment within the last year; requires notice to employment candidates of the use of such tools; provides remedies for violations.
Prohibits the use of automated systems to make employment decisions unless there is a meaningful human review of the output of such automated system prior to the final employment decision; requires employers that use an automated system in the hiring process to notify applicants of the use of such system; provides that an applicant who has received an adverse employment decision may request a human-conducted review of such decision.
Relates to the use of automated lending decision-making tools by banks for the purposes of making lending decisions; allows loan applicants to consent to or opt out of such use.