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NY · AI law2 min read

NYC Says Employers Are Liable When AI Helps Make Hiring Decisions

New York City says employers are still legally responsible when AI tools play a part in hiring or managing workers, so blaming the software will not protect a business.

By the Dashline deskSource: Law.com
NYC Says Employers Are Liable When AI Helps Make Hiring Decisions
Photo: Joe Gratz, CC0

New York City has made its position clear: if an employer uses AI to help make a decision about a worker and that decision is unlawful, the employer is responsible. Saying the software made the call is not a defense. The point comes from a Law.com expert opinion piece on the city's AI enforcement position.

What changed

According to the article, the city has reaffirmed that employers must follow anti-discrimination and worker-protection laws when they use automated systems. The piece frames the issue as a simple question: who is legally responsible when an algorithm contributes to an unlawful result? The city's answer is the employer.

Who it affects

Any employer in New York City that uses automated tools in employment decisions is touched by this. The article speaks of AI becoming more embedded in those decisions. The message for a business owner is that buying or using a tool from someone else does not move the legal risk onto that tool or its maker.

What audits and review can and cannot do

The article notes that audits and human review can help. An audit is a check of how a tool behaves. Human review means a person looks at the tool's output before a decision is made. But the article says these steps do not replace legal compliance. Doing them is useful, yet they do not make an unlawful decision lawful.

What to do

  • Find out which software your business uses to screen, rank or manage workers.
  • Know how each tool is used in real decisions, not just what it promises.
  • Keep a person involved in reviewing results, as one part of a wider approach.
  • Treat audits as support for compliance, not a substitute for it.

What is not known yet

The full article sits behind a subscription, so only the summary is available here. Details such as specific enforcement steps, penalties or new guidance are not in the material. Employers who want to know how the position applies to their own tools should read the full piece or ask a labor lawyer.

The takeaway

If your business uses software to screen or manage workers, the legal risk is yours, so learn how those tools are used and do not rely on audits alone.

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