Compliance
The NYC Bias Audit Law (Local Law 144) mandates employers and employment agencies using Automated Employment Decision Tools (AEDTs) within New York City undergo an annual, third-party bias audit. These audits evaluate AEDTs for potential bias across protected characteristics such as race/ethnicity, and sex. The law was enacted in 2021, went into effect on January 1, 2023, and began enforcement on July 5, 2023. Non-compliance can result in civil penalties of up to $1,500 per violation per day. Covered organizations must also publish a summary of audit results and notify candidates at least 10 business days before using an AEDT in any hiring process.
Warden AI is purpose-built to help employers, staffing firms, and HR tech vendors achieve and maintain NYC Local Law 144 compliance. Our independent AI bias auditing platform conducts the statistical analysis required by the law — including selection rate calculations by race/ethnicity and sex — and delivers a compliant audit report ready for public posting. Audits follow a structured timeline so you're never caught off-guard by enforcement deadlines. Whether you're completing your first audit or managing annual renewals, Warden AI provides a clear process from data submission to final report delivery. Book a demo to get started.
Preparation
Local Law 144 is already in effect, setting a precedent for other cities and states. Warden AI ensures your HR tech tools are continuously monitored and audited, with certification to demonstrate compliance.
Evaluate your AEDTs for disparate impact based on protected categories.
Deliver transparent audit results that meet disclosure requirements.
Avoid fines and demonstrate commitment to ethical hiring practices.
Frequently Asked Questions
Employers and employment agencies in New York City using AEDTs in hiring or promotion decisions.
Automated Employment Decision Tool (AEDT) is any software, algorithm, or AI system used to assist or automate decision-making in employment-related processes.
A bias audit is an independent evaluation of an Automated Employment Decision Tool (AEDT) by a third-party to assess whether it produces discriminatory outcomes based on protected characteristics such as race, ethnicity, or sex.
Non-compliance can result in $500 to $1,500 fines per violation. Each day an AEDT is used without a required bias audit or without proper candidate notification is considered a separate violation.
Any employer or employment agency that uses an AEDT to screen candidates or employees for NYC-based roles must comply — regardless of company size or industry.
The law requires an annual bias audit conducted by an independent third party. It must be completed before the AEDT is used and renewed each calendar year.
The audit analyzes selection rate disparities across race/ethnicity and sex. For full details on third-party bias audit requirements and methodology, see our Assurance Measures page.
Employers face civil penalties of up to $1,500 per violation per day, plus candidate notification failures and reputational risk.
Vendors are not directly regulated today, but their enterprise clients are — making audit-ready tools essential for sales and procurement conversations.
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