Guide
Does NYC Local Law 144 apply to you?
Updated June 16, 2026 · By Max Langley, Bias Audit USA
Local Law 144 applies if you use an automated employment decision tool to screen, score, or rank candidates or employees for a job located in New York City, including remote roles tied to a NYC office. If all three of those are true, you must commission an annual independent bias audit, publish the results, and notify candidates.
The three-part test
You are covered if all three are true:
- 1. You use an AEDT. An automated tool that scores, ranks, or filters candidates and substantially assists or replaces a human decision.
- 2. For an employment decision. Hiring, screening, or promotion, not unrelated HR admin.
- 3. For a NYC role. The job is located in New York City, including remote roles tied to a NYC office.
What counts as an AEDT
The tool has to use machine learning, statistical modeling, or AI to substantially assist or replace a human hiring decision. Resume and application screeners, video-interview scorers, automated skills or personality assessments, and candidate ranking or matching engines typically qualify. A tool that merely stores applications or schedules interviews, without scoring or ranking people, generally does not. If you are unsure, the safest assumption is that a scoring or ranking tool is in scope.
Remote roles and out-of-state employers
The trigger is the location of the job, not where your company is based. A remote position tied to a New York City office can be covered, which means an employer headquartered elsewhere can still fall under Local Law 144 when hiring for NYC-linked roles. If you advertise roles as NYC or NYC-remote, plan for the audit.
If you are a hiring-tech vendor
The legal duty sits with the employer, but the market has pushed it onto you. Enterprise buyers increasingly will not adopt a hiring tool for NYC roles unless you can hand them an independent bias audit, the same way they ask for a SOC 2 report. An audit you can share has become a sales asset, not just a compliance task.
If it applies, here is what you owe
Commission an annual independent bias audit before you use the tool, publish a public summary of the results, and give candidates at least 10 business days notice that an automated tool will be used. Then repeat every year and again after any significant change to the tool. Penalties for skipping it run up to $1,500 per day.
Who has to comply with NYC Local Law 144?
Any employer or employment agency that uses an automated employment decision tool (AEDT) to screen a candidate or employee for a job located in New York City, including remote roles tied to a NYC office. If you use such a tool for NYC hiring or promotion, the obligation to commission an independent bias audit sits with you.
What counts as an automated employment decision tool?
A computational tool that uses machine learning, statistical modeling, or AI to substantially assist or replace a human hiring or promotion decision. Resume screeners, video-interview scorers, automated assessments, and ranking or matching tools typically qualify. Simple tools that do not score or rank candidates usually do not.
Does it apply to remote roles?
Yes, if the role is tied to New York City, such as a remote position that reports to a NYC office or location. The trigger is the location of the job, not where the candidate or the employer sits, so out-of-state companies hiring for NYC-linked roles can be covered.
I am a hiring-tech vendor, not an employer. Does this affect me?
The legal obligation falls on the employer using the tool, but it affects you directly. Your customers cannot use your tool for NYC roles without an audit, so an independent bias audit you can share has become a standard procurement requirement for hiring software.
What do I have to do if it applies?
Commission an annual independent bias audit before using the tool, publish a summary of the results on your careers or website, and notify candidates at least 10 business days before the tool is used. Repeat annually and after any significant change to the tool.
Sources
- NYC Department of Consumer and Worker Protection, Automated Employment Decision Tools, nyc.gov.
- NYC Local Law 144 of 2021 and DCWP final rules, rules.cityofnewyork.us.
Not sure if you are covered?
Tell us which hiring tools you use and where you hire. We will tell you whether Local Law 144 applies and what an audit would cost.
This guide is general information, not legal advice. Confirm your obligations with qualified counsel.