What is an automated employment decision tool (AEDT)?
An automated employment decision tool (AEDT) is New York City's legal term, under Local Law 144, for software that substantially helps decide who is hired or promoted. Employers and agencies using one for city roles need a bias audit within the past year, a public summary of the results and notice to candidates.
Law and compliancetopic
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New York City's legal term for software that substantially helps decide who is hired or promoted. Using one requires a yearly bias audit, a public summary and notice to candidates.
An AEDT is a tool that uses machine learning, statistical modeling, data analytics or AI to produce a score, classification or recommendation that substantially assists or replaces discretionary hiring or promotion decisions. Resume screeners that rank applicants and assessments that score candidates are common examples. A tool used only for tasks such as scheduling, or one whose output has little weight in the decision, may fall outside the definition.
The city's Department of Consumer and Worker Protection enforces the law, which it began enforcing on July 5, 2023. Covered employers and employment agencies must have an independent bias audit done within one year before use, make a summary of the results public, and notify candidates and employees before the tool is used. The city's guidance says notice should be given 10 business days before use. Complaints can be filed with the department.
Why it matters to recruiters
New York City is a major hiring market, and many recruiting tools now include AI ranking or scoring. Agencies and employers hiring for city roles need to know whether their tools count as AEDTs and, if so, have the audit, posting and notice in place. Local Law 144 has also become a model that other places look at when writing their own rules.
An example from a recruiting desk
To recruit accountants for New York City clients, an agency uses a tool that ranks applicants and hides those below a set score. Because the ranking decides who recruiters see, the compliance lead treats it as an AEDT. In this example she gets the vendor's latest independent audit, posts the summary on the careers page and adds a notice to job ads and the application flow.
Tips that help
List every tool that scores, ranks or filters candidates and assess each one against the definition.
Get the latest independent audit from each vendor and diary the renewal date.
Add the required notice to job postings or careers pages before the tool is used.
Recheck coverage when a vendor adds new AI features.
Mistakes to avoid
Assuming a tool is exempt because a recruiter makes the final click.
Posting an audit summary but forgetting to give candidates notice.
Which tools help?
A few of the HR compliance tools in our directory. Prices are the published starting price on the date we last checked.
Does Local Law 144 apply to companies outside New York City?
It applies based on the job and candidate, not only where a company is based. If you use a covered tool to screen candidates or employees for positions in New York City, the law can apply even if your office is elsewhere. Check the city's rules and FAQ for details. This is not legal advice.
What has to be in an AEDT notice?
Candidates must be told that an AEDT will be used, which job qualifications and characteristics it will assess, and how to request an alternative process or accommodation if available. Information about data sources and retention must also be available. The city's guidance sets timing, generally 10 business days before use.
Is a resume parser an AEDT?
Usually not on its own. A parser that only extracts information into fields does not score or recommend candidates. If the same product also ranks, scores or filters people in a way that substantially helps decide who moves forward, that feature may make it an AEDT. Review each feature against the definition.
