Regulon — NY-S-09028 · NY S 9028 (AI Employment Discrimination)

Summary

Amends the New York Executive Law (Human Rights Law) to make it an unlawful discriminatory practice for an employer to use artificial intelligence in recruitment, hiring, promotion, discharge, discipline, and other employment decisions in a manner that discriminates on the basis of protected characteristics including age, race, sex, disability, and others. Prohibits use of zip codes as a proxy for protected classes. Separately requires employers to notify employees when AI is used for these employment purposes. Directs the Division of Human Rights to adopt implementing rules covering notice requirements. Enforced through the existing Human Rights Law framework, which provides both administrative and private judicial remedies.

Enforcement & Penalties

Enforcement Authority

The Division of Human Rights is the designated enforcement authority. The Division is directed to adopt rules and regulations necessary for implementation and enforcement of the AI employment discrimination provisions. Enforcement follows the existing New York Human Rights Law framework, which allows complaint-driven administrative proceedings before the Division and, alternatively, civil actions in court. Individuals may file complaints with the Division or elect to proceed directly in court under Executive Law § 297.

Penalties

Remedies follow the existing New York Human Rights Law framework (Executive Law § 297). Available remedies include compensatory damages, back pay, front pay, hiring or reinstatement orders, cease and desist orders, civil fines and penalties for willful violations, and attorney's fees. Punitive damages may be available in court actions. The bill itself does not specify new or distinct penalty amounts beyond existing Human Rights Law remedies.

Who Is Covered

Compliance Obligations 3 obligations · click obligation ID to open requirement page

H-02 Non-Discrimination & Bias Assessment · H-02.1 · Deployer · EmploymentAutomated Decisionmaking

Exec. Law § 296(23)(a)

Plain Language

Employers may not use artificial intelligence for any employment decision — including recruitment, hiring, promotion, renewal, training selection, discharge, discipline, tenure, or terms and conditions of employment — if doing so has the effect of subjecting employees to discrimination on the basis of any protected class under the New York Human Rights Law. The statute explicitly prohibits using zip codes as a proxy for protected classes. This is a disparate impact standard — the prohibition is triggered by discriminatory effect, not just discriminatory intent. The covered protected classes are extensive, including age, race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex, disability, predisposing genetic characteristics, familial status, marital status, and domestic violence victim status.

Statutory Text

(a) It shall be an unlawful discriminatory practice for an employer to use artificial intelligence for recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment that has the effect of subjecting employees to discrimination on the basis of age, race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex, disability, predisposing genetic characteristics, familial status, marital status, or status as a victim of domestic violence or to use zip codes as a proxy for such protected classes.

D-01 Automated Processing Rights & Data Controls · D-01.5 · Deployer · EmploymentAutomated Decisionmaking

Exec. Law § 296(23)(a)

Plain Language

The provision explicitly prohibits the use of zip codes as a proxy for protected classes in AI-driven employment decisions. This is a direct proxy variable restriction — employers may not design or use AI systems that infer protected characteristics from non-sensitive geographic proxies to make employment decisions. This maps to D-01.5's prohibition on using proxy variables to circumvent restrictions on sensitive attribute use in consequential automated decisions.

Statutory Text

H-01 Human Oversight of Automated Decisions · H-01.3 · Deployer · EmploymentAutomated Decisionmaking

Exec. Law § 296(23)(b)-(c)

Plain Language

Employers must notify employees when using artificial intelligence for recruitment, hiring, promotion, discharge, discipline, and other employment purposes listed in subdivision (a). Failure to provide notice is itself an independent unlawful discriminatory practice. The specific circumstances requiring notice, timing, and method of delivery will be determined by Division of Human Rights rulemaking. Until those rules are adopted, the obligation to provide notice exists but the precise mechanics are undefined. Subdivision (c) delegates rulemaking authority but creates no independent compliance obligation — it is included here because it qualifies and conditions the notice requirement in subdivision (b).

Statutory Text

(b) It shall be an unlawful discriminatory practice for an employer to fail to provide notice to an employee that such employer is using artificial intelligence for the purposes described in paragraph (a) of this subdivision. (c) The division shall adopt any rules or regulations necessary for the implementation and enforcement of this subdivision, including, but not limited to, rules on the circumstances and conditions that require notice, the time period for providing such notice and the means for providing such notice.