WHAT THIS BILL REGULATES · 3 REQUIREMENT TYPES
How Is This Bill Enforced
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.
(1)(a) "Automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a)" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision toolsAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.
(1)(b) "Disparate impact reportDisparate impact report"Disparate impact report" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact report shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-f(1)(b)" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact reportDisparate impact report"Disparate impact report" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact report shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-f(1)(b) shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.
(1)(c) "Disability accommodation policyDisability accommodation policy"Disability accommodation policy" means an overview of the procedures an automated employment decision tool relies on to ensure that candidates with disabilities can receive reasonable accommodations in the hiring process in accordance with the Americans with Disabilities Act of 1990, as amended (Public Law 101-336).Labor Law § 203-f(1)(c)" means an overview of the procedures an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) relies on to ensure that candidates with disabilities can receive reasonable accommodations in the hiring process in accordance with the Americans with Disabilities Act of 1990, as amended (Public Law 101-336).
(1)(d) "Employment decisionEmployment decision"Employment decision" means to screen candidates for employment.Labor Law § 203-f(1)(d)" means to screen candidates for employment.
This subdivision defines the key terms governing the bill's scope. Automated employment decision tool is defined broadly to include any system that filters employment candidates without relying on individual human assessments, explicitly encompassing personality tests, cognitive ability tests, resume scoring systems, and systems governed by statistical theory or machine learning algorithms. The disparate impact report must follow EEOC Uniform Guidelines methodology, differentiate between selected and non-selected candidates, and analyze adverse impact on the basis of sex, race, or ethnicity. The disability accommodation policy must describe how the tool ensures ADA-compliant reasonable accommodations during the hiring process.
(2)(a) 1 A disparate impact reportDisparate impact report"Disparate impact report" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact report shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-f(1)(b) shall be conducted one year prior to the sale or the offering for sale of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a). A public disclosure report shall be provided to the department no less than annually and shall include the results of the most recent disparate impact reportDisparate impact report"Disparate impact report" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact report shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-f(1)(b) for each automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) available for sale in the state. Such report shall also include the disability accommodation policy of the vendor.
(2)(b) 2 Every sale of such tool shall include a copy of the most recent public disclosure report at no additional cost.
(2)(c) 3 No less than annually, a disparate impact reportDisparate impact report"Disparate impact report" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact report shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-f(1)(b) shall be produced to assess the actual impact of any automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) used by any employer to select candidates for jobs within the state. Such disparate impact reportDisparate impact report"Disparate impact report" means an analysis, including but not limited to testing, of the extent to which use of an automated employment decision tool is likely to result in an adverse impact to the detriment of any group on the basis of sex, race or ethnicity. A disparate impact report shall differentiate between candidates who were selected and candidates who were not selected by the tool and shall include a disparate impact analysis as specified in the uniform guidelines on employee selection procedures promulgated by the United States equal employment opportunity commission.Labor Law § 203-f(1)(b) shall be provided to the employer but shall not be publicly filed and shall be subject to all applicable privileges.
(2)(d) 4 Such tool shall be sold or offered for sale with a notice stating that such tool is subject to the provisions of this section.
Subdivision 2 establishes the core conditions that must be satisfied before an automated employment decision tool may be lawfully sold or offered for sale in New York. Vendors must conduct a disparate impact report no less than one year before sale, file annual public disclosure reports with the Department of Labor that include both the most recent disparate impact results and the vendor's disability accommodation policy, and furnish each purchaser with a copy of the most recent report. Additionally, vendors must produce annual disparate impact reports assessing the actual impact of deployed tools on employers using them to select candidates within the state — these employer-facing reports are confidential and subject to applicable privileges. Every sale must also include a notice that the tool is subject to the requirements of this section.
(3) 5 A person who uses an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) to screen a candidate for an employment decisionEmployment decision"Employment decision" means to screen candidates for employment.Labor Law § 203-f(1)(d) shall provide notice to each such candidate that an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) subject to disparate impact reporting was used in connection with assessing the candidate and shall notify each such candidate of the job qualifications or characteristics that such tool was used to assess.
Subdivision 3 creates a candidate-facing notice obligation running to any person who uses an automated employment decision tool to screen a candidate. The employer must inform each candidate that an automated tool subject to disparate impact reporting was used, and must disclose the specific job qualifications or characteristics the tool was used to assess. This is the bill's only obligation directed at deployer-employers rather than vendors.
(4)(a) A person who violates any provision of this section or any rule or regulation promulgated thereunder, shall be subject to a civil penalty of up to five hundred dollars for the first violation and for each additional violation occurring on the same day as the first violation, and a civil penalty of not less than five hundred dollars, nor more than one thousand five hundred dollars, for each subsequent violation.
(4)(b) Violations shall accrue on a daily basis for each automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a) that is sold or offered for sale in violation of subdivision two of this section.
(4)(c) Each instance in which notice is not provided to a candidate prior to the use of an automated employment decision toolAutomated employment decision tool"Automated employment decision tool" means any system used to filter employment candidates or prospective candidates for hire in a way that establishes a preferred candidate or candidates without relying on candidate-specific assessments by individual decision-makers. Automated employment decision tools shall include personality tests, cognitive ability tests, resume scoring systems and any system whose function is governed by statistical theory, or whose parameters are defined by such systems, including inferential methodologies, linear regression, neural networks, decision trees, random forests and other learning algorithms.Labor Law § 203-f(1)(a), in violation of subdivision three of this section, shall constitute a single violation and each thirty day period thereafter in which such notice is not provided to such candidate shall constitute a separate violation.
Subdivision 4 establishes the penalty structure for violations. A first violation and each additional violation on the same day carry a civil penalty of up to $500. Subsequent violations carry penalties of $500–$1,500 each. The bill specifies two accrual mechanisms: violations of subdivision 2 (sale requirements) accrue daily for each non-compliant tool sold or offered for sale, while violations of subdivision 3 (candidate notice) accrue per instance of failure to notify, with each subsequent 30-day period of non-notification constituting a separate violation.
(5) The commissioner may initiate an investigation if a preponderance of the evidence establishes a suspicion of a violation, including but not limited to, mandating a third party disparate impact audit. The commissioner may also initiate in a court of competent jurisdiction any action or proceeding that may be appropriate or necessary for the correction of any violation issued pursuant to this section, including mandating compliance with the provisions of this section or such other relief as may be appropriate.
Subdivision 5 grants the Commissioner of Labor authority to investigate suspected violations upon a preponderance of the evidence, including the power to mandate a third-party disparate impact audit. The Commissioner may also initiate court proceedings for correction of violations, compliance mandates, or other appropriate relief. This enforcement mechanism is agency-initiated only — the bill does not create a private right of action.
(6) The department may promulgate rules and regulations as it deems necessary to effectuate the purposes of this section, on or before such effective date.
Subdivision 6 grants the Department of Labor authority to promulgate rules and regulations necessary to effectuate the bill's purposes. The rulemaking must occur on or before the effective date of the act.