New York · Senate Bill · 2025–2026 Regular Sessions
SB4394
New York Senate Bill 4394-A — An Act to amend the labor law, in relation to automated employment decision tools

Status ● Introduced Effective N/A Passage Likelihood L

WHAT THIS BILL REGULATES · 5 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Attorney General enforcement. The AG may initiate an investigation if a preponderance of the evidence establishes a suspicion of a violation. A 45-day written notice and cure period must precede any enforcement action. No private right of action is created. Upon AG request, deployers and developers must produce impact assessments within 45 days.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
The bill does not specify monetary penalties, statutory damages, or non-monetary remedies. Enforcement is through Attorney General investigation and action; specific remedy types and penalty amounts are not enumerated.

What This Bill Requires

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text
Analysis & Obligations
Labor Law § 750
Definitions

1–7 § 750. Definitions. For the purposes of this article, the following terms shall have the following meanings: 1. "Artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An artificial intelligence system uses machine and human-based inputs to: (a) perceive real and virtual environments; (b) abstract such perceptions into models through analysis in an automated manner; and (c) use model inference to formulate options for information or action.Labor Law § 750(1)" shall mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An artificial intelligence system uses machine and human-based inputs to: (a) perceive real and virtual environments; (b) abstract such perceptions into models through analysis in an automated manner; and (c) use model inference to formulate options for information or action.Labor Law § 750(1) system uses machine and human-based inputs to: (a) perceive real and virtual environments; (b) abstract such perceptions into models through analysis in an automated manner; and (c) use model inference to formulate options for information or action. 2. "Automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2)" shall mean a system or service that uses artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An artificial intelligence system uses machine and human-based inputs to: (a) perceive real and virtual environments; (b) abstract such perceptions into models through analysis in an automated manner; and (c) use model inference to formulate options for information or action.Labor Law § 750(1) and has been specifically developed and marketed to, or specifically modified to be, the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in making a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3). 3. "Consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3)" shall mean a determination made by a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) to hire, promote, or terminate the employment of an individual. 4. "Controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4)" shall mean a factor that is weighted more than all other factors combined. 5. "DeployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5)" shall mean any person, partnership, or corporation that uses an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) for a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3). 6. "DeveloperDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6)" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2), or substantially modifies an artificial intelligenceArtificial intelligence"Artificial intelligence" shall mean a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An artificial intelligence system uses machine and human-based inputs to: (a) perceive real and virtual environments; (b) abstract such perceptions into models through analysis in an automated manner; and (c) use model inference to formulate options for information or action.Labor Law § 750(1) system or service for the intended purpose of being the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3), whether for its own use or for use by a third party. 7. "Impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7)" shall mean a documented risk-based evaluation of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2), in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.

Section 750 establishes the defined terms for Article 20-D. The scope of the bill turns on two critical thresholds: (1) the AI system must have been specifically developed and marketed to, or specifically modified to be, the controlling factor in a consequential employment decision, and (2) controlling factor is defined as a factor weighted more than all other factors combined — a high bar that excludes AI tools used as one input among several. Consequential employment decisions are limited to hiring, promotion, and termination, excluding other employment-adjacent decisions such as compensation, scheduling, or performance evaluation.

Labor Law § 751
Anti-discrimination
Deployer

(1) 1 A deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) shall not use an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) in a manner that violates article fifteen of the executive law.

(2) Nothing in this section shall limit a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) from processing data for the purpose of preventing or addressing unlawful discrimination or complying with this article or otherwise evaluating the effectiveness of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2).

Section 751 establishes the bill's core anti-discrimination mandate by incorporating the New York Human Rights Law (Executive Law Article 15) as the operative anti-discrimination standard for AEDT use. Deployers are prohibited from using an automated employment decision tool in any manner that would violate existing state discrimination protections. A savings clause in subdivision 2 preserves the ability of deployers to process protected-class data for the purpose of identifying and preventing discrimination or evaluating AEDT effectiveness — an important carve-out that ensures bias testing itself is not treated as a violation.

Compliance actions 1 item
1
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) must not use an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) in a manner that violates the New York Human Rights Law (Executive Law Article 15).
H-02.1
Labor Law § 752
Requirements for a deployer of an automated employment decision tool
Deployer

(1) 2 Within one year of the effective date of this section, and annually thereafter, a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) shall perform an impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) for any automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) that such deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) uses.

(2)(a)–(g) 2 The impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) required pursuant to subdivision one of this section shall include, but not be limited to: (a) A statement of the purpose of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) and its benefits, uses, and deployment contexts; (b) A description of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2)'s output and how such output is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3); (c) A summary of the type of data collected from an individual and processed by the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) when such tool is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3); (d) A statement of the extent to which the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5)'s use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) is consistent with or varies from the developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6)'s statement of intended use provided to such deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) pursuant to subdivision one of section seven hundred fifty-three of this article; (e) An assessment of any reasonably foreseeable risk of unlawful discrimination arising from the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5)'s use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) and a description of the safeguard implemented or that will be implemented by such deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) to mitigate such risk; (f) A description of how the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) is used and monitored by the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) when it is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3); and (g) A description of how the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) has been or will be evaluated for validity or relevance.

Section 752 requires deployers to conduct annual impact assessments for every AEDT in use, beginning within one year of the effective date. The assessment must cover seven enumerated categories: the tool's purpose and benefits; how its output serves as the controlling factor; data types collected from individuals; consistency with the developer's stated intended use; foreseeable discrimination risk and mitigation safeguards; monitoring practices; and validity or relevance evaluation. This is one of the more prescriptive deployer-side impact assessment frameworks in pending U.S. legislation, particularly notable for requiring the deployer to affirmatively compare its actual use against the developer's intended-use statement.

Compliance actions 1 item
2
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) must conduct an annual impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) for each AEDT in use, covering: the tool's purpose, benefits, and deployment context; how its output is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4); data types collected from individuals; consistency with the developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6)'s intended-use statement; foreseeable discrimination risk and mitigation safeguards; monitoring practices; and validity or relevance evaluation.
H-02.3
Labor Law § 753
Requirements for a developer of an automated employment decision tool
Developer

(1)(a)–(c) 3 A developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) shall provide a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) with a statement regarding the intended use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) and documentation regarding: (a) The known limitations of the consequential automated decision tool, including any reasonably foreseeable risk of unlawful discrimination arising from its intended use; (b) A description of the type of data used to program or train the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2); and (c) A description of how the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) was evaluated for validity and explainability before sale or licensing.

(2) 4 Within one year of the effective date of this section, and annually thereafter, a developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) shall perform an impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) for any automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) made available for sale or licensing.

(3)(a)–(e) 4 The impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) required pursuant to subdivision one of this section shall include, but not be limited to: (a) A statement of the intended purpose of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) and its intended benefits, uses, and deployment contexts; (b) A description of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2)'s output and how such output is intended to be the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in consequential employment decisionsConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3); (c) A summary of the type of data the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) is intended to collect from an individual when it is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3); (d) An assessment of any reasonably foreseeable risk of unlawful discrimination arising from the intended use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) and a description of the safeguard implemented or that will be implemented by the developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) to mitigate such risk; and (e) A description of how the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) can be monitored by the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) when it is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3).

(4) This section does not require a developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) to disclose any trade secret, as defined by section 1839 of title 18 of the United States code, or other privileged or confidential business information to a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5).

Section 753 imposes parallel obligations on developers. Subdivision 1 requires developers to provide deployers with an intended-use statement and documentation covering known limitations, discrimination risks, training data types, and pre-sale validity and explainability evaluations. Subdivision 2 requires developers to conduct their own annual impact assessment — distinct from the deployer's — covering intended purpose, intended output behavior, intended data collection, discrimination risk and mitigation, and monitoring guidance for deployers. Subdivision 4 preserves trade secret protections, ensuring developers are not required to disclose proprietary algorithms or confidential business information to deployers.

Compliance actions 2 items
3
DevelopersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must provide deployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) with an intended-use statement and documentation covering the AEDT's known limitations, foreseeable discrimination risks, training data types, and pre-sale validity and explainability evaluations.
G-02.1
4
DevelopersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must conduct an annual impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) for each AEDT made available for sale or licensing, covering: intended purpose, benefits, and deployment contexts; intended output and controlling-factor role; intended data collection from individuals; foreseeable discrimination risk and mitigation safeguards; and deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) monitoring guidance.
H-02.3
Labor Law § 754
AI governance
DeployerDeveloper

(1)–(2)(a)–(e) 5 A deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) shall establish, document, implement, and maintain a governance program that contains reasonable administrative and technical safeguards to map, measure, manage, and govern the reasonably foreseeable risk of unlawful discrimination associated with the use or intended use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2). 2. The safeguards required pursuant to subdivision one of this section shall be appropriate to: (a) The use or intended use of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2); (b) The entity's role as a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5), developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6), or both; (c) The deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6)'s size, complexity, and resources; (d) The nature, context, and scope of the activities of the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) in connection with the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2); and (e) The technical feasibility and cost of available tools, assessments, and other means used by the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) to map, measure, manage, and govern the risks associated with an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2).

(3)(a)(i)–(ii) 6 A governance program required pursuant to subdivision one of this section shall be designed to, at a minimum: (a) Designate one or more employees to be responsible for overseeing and maintaining the governance program and compliance with this article; (i) An employee designated pursuant to this paragraph may assert to their employer a good faith belief that the design, production, or use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) fails to comply with the requirements of this article. (ii) An employer of an employee designated pursuant to this paragraph shall conduct a prompt and complete assessment of any compliance issue raised by such employee.

(3)(b)–(g) 7 Identify and implement safeguards to address reasonably foreseeable risks of unlawful discrimination resulting from the use or intended use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2); (c) When acting as a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5), conduct impact assessmentsImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) in accordance with section seven hundred fifty-two of this article; (d) When acting as a developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6), meet all obligations required pursuant to section seven hundred fifty-three of this article; (e) Conduct an annual and comprehensive review of the policies, practices, and procedures to ensure compliance with this article; (f) Maintain the results of the impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) required by this article for two years after the completion of such impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7); and (g) Evaluate and make reasonable adjustments to administrative and technical safeguards in light of material changes in technology, the risks associated with the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2), the state of technical standards, and changes in the business arrangements or operations of the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6).

Section 754 mandates that both deployers and developers establish a formal AI governance program containing reasonable administrative and technical safeguards to map, measure, manage, and govern foreseeable discrimination risk. The program must be proportionate to the entity's role, size, complexity, and resources, as well as the technical feasibility and cost of available tools. At minimum, the program must designate responsible compliance personnel (with an internal whistleblower mechanism), implement discrimination-risk safeguards, ensure impact assessments are performed, conduct annual compliance reviews, retain impact assessments for two years, and adapt safeguards in light of material changes to technology, risk, or business operations.

Compliance actions 3 items
5
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) and developersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must establish, document, implement, and maintain an AI governance program with reasonable administrative and technical safeguards to map, measure, manage, and govern foreseeable discrimination risk associated with their AEDTs, scaled to the entity's role, size, complexity, resources, and the technical feasibility and cost of available tools.
G-01.1
6
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) and developersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must designate one or more employees responsible for overseeing and maintaining the governance program and compliance with this article. Designated employees may raise good-faith compliance concerns, and the employer must conduct a prompt and complete assessment of any issue raised.
G-01.6
7
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) and developersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must, as part of their governance program: (1) identify and implement discrimination-risk safeguards, (2) conduct impact assessmentsImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) per §§ 752–753, (3) perform annual comprehensive compliance reviews, (4) retain impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) results for at least two years, and (5) make reasonable adjustments to safeguards in light of material changes in technology, risk, standards, or business operations.
G-01.2
Labor Law § 755
Transparency
DeployerDeveloper

(1)–(2)(a)–(c) 8 A deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) shall, at or before the time of a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3), notify the individual that is the subject of the consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3) that an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) is in use. 2. A deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) shall provide the following information to an individual notified pursuant to subdivision one of this section: (a) A statement of the purpose of the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2); (b) A plain language description of how the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4) in the consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3); and (c) Contact information of the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5).

(3)(a)–(b) 9 A deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) shall make publicly available, in a readily accessible manner, a plain language policy that provides a summary of the following: (a) The type of automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) currently in use or made available to others for use; and (b) How the deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) manages any reasonably foreseeable risk of unlawful discrimination that arises from the automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) currently in use or made available to others for use.

Section 755 imposes three distinct transparency obligations. Subdivisions 1 and 2 require deployers to notify each individual subject to a consequential employment decision — at or before the time of the decision — that an AEDT is in use, and to provide the tool's purpose, a plain-language description of how it is the controlling factor, and deployer contact information. Subdivision 3 requires both deployers and developers to make publicly available a plain-language policy summarizing the types of AEDTs in use or offered and how they manage foreseeable discrimination risk.

Compliance actions 2 items
8
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) must notify each individual subject to a consequential employment decisionConsequential employment decision"Consequential employment decision" shall mean a determination made by a deployer to hire, promote, or terminate the employment of an individual.Labor Law § 750(3), at or before the time of the decision, that an AEDT is in use, and must provide the tool's purpose, a plain-language description of how it is the controlling factorControlling factor"Controlling factor" shall mean a factor that is weighted more than all other factors combined.Labor Law § 750(4), and deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) contact information.
H-01.1
9
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) and developersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must make publicly available, in a readily accessible manner, a plain-language policy summarizing the types of AEDTs in use or made available, and how they manage foreseeable discrimination risk arising from those tools.
G-02.4
Labor Law § 756
Enforcement
DeployerDeveloper

(1)(a)–(c) 10 The attorney general may initiate an investigation of a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) if a preponderance of the evidence establishes a suspicion of a violation of this article. (a) Upon the request of the attorney general, a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) shall, within forty-five days, provide to the attorney general any impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) performed pursuant to this article. (b) The disclosure of an impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) pursuant to paragraph (a) of this subdivision does not constitute a waiver of any attorney-client privilege or work-product protection that might otherwise exist with respect to such impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) and any information contained therein. (c) A trade secret, as defined by section 1839 of title 18 of the United States code, that is contained in an impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) disclosed to the attorney general pursuant to paragraph (a) of this subdivision is exempt from article six of the public officers law.

(2)(a)–(b) 10 2. (a) The attorney general shall provide written notice to a deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developer of an alleged violation of this article at least forty-five days prior to commencing an enforcement action. (b) The deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) may cure the noticed violation within forty-five days of receiving the written notice required by paragraph (a) of this subdivision.

Section 756 vests enforcement authority exclusively in the Attorney General. The AG may investigate upon a preponderance-of-the-evidence suspicion of a violation and may compel production of impact assessments within 45 days. Attorney-client privilege and work-product protections are preserved for produced impact assessments, and trade secrets contained therein are exempt from FOIL disclosure. Critically, the AG must provide 45 days' written notice of an alleged violation before commencing an enforcement action, and the entity may cure the violation within that period — effectively creating a mandatory notice-and-cure safe harbor.

Compliance actions 1 item
10
DeployersDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) and developersDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) must, upon request by the Attorney General, produce all impact assessmentsImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7) performed under this article within 45 days. Attorney-client privilege, work-product protection, and trade secret exemptions from FOIL are preserved.
R-02.2
Labor Law § 757
Compliance — local preemption

A deployerDeployer"Deployer" shall mean any person, partnership, or corporation that uses an automated employment decision tool for a consequential employment decision.Labor Law § 750(5) or developerDeveloper"Developer" shall mean any person, partnership, or corporation that knowingly designs, codes, or produces an automated employment decision tool, or substantially modifies an artificial intelligence system or service for the intended purpose of being the controlling factor in a consequential employment decision, whether for its own use or for use by a third party.Labor Law § 750(6) that complies with this article shall be deemed compliant with any law, regulation, rule, requirement, or standard related to the performance of an impact assessmentImpact assessment"Impact assessment" shall mean a documented risk-based evaluation of an automated employment decision tool, in accordance with the minimum requirements in subdivision two of section seven hundred fifty-two of this article and subdivision three of section seven hundred fifty-three of this article, respectively.Labor Law § 750(7), audit, or governance program, or the equivalent thereof, of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" shall mean a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to be, the controlling factor in making a consequential employment decision.Labor Law § 750(2) that is adopted, maintained, or enforced by a political subdivision of New York state.

Section 757 establishes an express preemption provision: a deployer or developer that complies with Article 20-D is deemed compliant with any local (political subdivision) law, regulation, rule, or standard relating to impact assessments, audits, or governance programs for automated employment decision tools. This would effectively preempt NYC Local Law 144's bias-audit requirements for entities compliant with this state-level framework, replacing the current city-level regime with the state's broader governance, impact assessment, and transparency obligations.

Passage Likelihood

Low
Status Introduced
Chamber No passage
Committee No action
Majority party Yes
Bipartisan No
Prior session None

Legislative History

2025-02-04 REFERRED TO LABOR
2025-12-05 AMEND (T) AND RECOMMIT TO LABOR
2025-12-05 PRINT NUMBER 4394A
2026-01-07 REFERRED TO LABOR

Entry Last Reviewed

2026-05-20
AI generated