NYC Local Law 144: From Regulatory Mandate to Competitive Advantage
New York City’s Local Law 144 is now in effect, mandating independent bias audits for all Automated Employment Decision Tools (AEDTs) used in hiring and promotion. For organizations leveraging AI to build the future of their workforce, this is not a compliance hurdle. It is an opportunity to demonstrate leadership in ethical AI and operational excellence.
Assessed Intelligence provides the independent, rigorous, and scientifically-grounded audits required to not only comply with LL-144 but to build more robust, fair, and effective hiring systems.
Understanding the Mandate: NYC’s AI Bias Audit
Local Law 144 requires any employer using an AEDT for hiring or promotion within NYC to meet three core obligations:
Annual Independent Bias Audit: The tool must be subjected to an annual audit by an impartial third party to assess for disparate impact based on sex, race, and ethnicity.
Public Transparency: A summary of the most recent audit’s results must be published on the employer’s website.
Candidate Notification: Candidates must be informed that an AEDT is being used in the evaluation process.
What is an Automated Employment Decision Tool (AEDT)?
An AEDT is defined as any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output (e.g., a score or classification) to substantially assist or replace discretionary decision-making.
The Metric: The Impact Ratio
The audit’s central task is to calculate the selection rate for each demographic category and compare it to the most-selected group. This produces an “impact ratio,” a statistical measure of fairness. Non-compliance results in significant, compounding financial penalties and public scrutiny.
Our Solution: Independent Audits, Actionable Intelligence
Assessed Intelligence delivers more than a compliance certificate. We provide the deep analytical insight required to understand how your tools are performing and how to improve them. We are your partners in navigating the intersection of AI, law, and human capital.
End-to-End Audit Management
As your qualified independent auditor, we manage the entire process, from secure data handling and scoping to rigorous statistical analysis and reporting.
Methodologically Sound Analysis
We conduct bias audits that are not only compliant with the letter of the law but are grounded in established data science and psychometric principles, ensuring the results are valid and defensible.
Clear, Insightful Reporting
We provide a comprehensive report detailing our methodology, findings, and a clear interpretation of the results. You will understand precisely how your AEDT functions in relation to key demographic groups.
Public Disclosure & Communication Support
We generate the clear, concise summary of the audit results required for public posting and advise on best practices for communicating your commitment to fairness to candidates and stakeholders.
Confidential Remediation Advisory
Should our analysis identify statistically significant disparities, we provide confidential, actionable guidance to help your technical and HR teams diagnose the source and implement strategies to mitigate bias effectively.
The Assessed Advantage
Choosing an auditor is a critical decision. It requires a partner with unimpeachable integrity and deep technical expertise.
Scientific Rigor
Our audits are led by data scientists with specialized expertise in algorithmic fairness, machine learning, and industrial-organizational psychology.
True Independence
We provide the objective, impartial, and credible third-party validation that the law requires and that builds public trust.
Strategic Insight
We move beyond the numbers to provide qualitative insights, helping you understand the context behind the data and make smarter decisions about your AI stack.
Uncompromising Confidentiality
We operate under strict data security and confidentiality protocols to protect your sensitive information throughout the audit process.
Secure Your Compliance and Enhance Your Strategy
AI regulation has begun. Address the requirements of Local Law 144 with a partner dedicated to rigor, integrity, and actionable intelligence.