AI Compliance in New York
New York imposes some of the strictest AI hiring regulations in the country through NYC Local Law 144, which requires annual independent bias audits and candidate disclosure for automated employment decision tools. Financial institutions face additional AI governance requirements under the NYDFS cybersecurity regulation.
AI Regulations
| Regulation | What It Covers | Effective Date | Applies To |
|---|---|---|---|
| NYC Local Law 144 (Automated Employment Decision Tools) | Mandatory bias audits and disclosure for AI tools used in hiring and promotion in NYC | July 2023 | Employers and employment agencies using AI hiring tools for NYC positions |
| NY SHIELD Act | Data security requirements applicable to AI systems handling private information | March 2020 | Businesses holding private data of New York residents |
| NYDFS Cybersecurity Regulation (23 NYCRR 500) | Cybersecurity controls for financial institutions including AI system governance | November 2023 (amended) | Financial services companies regulated by NYDFS using AI systems |
Compliance Steps
- Conduct annual independent bias audits for all automated employment decision tools under LL 144
- Publish bias audit results on the employer website and provide candidate notice at least 10 days before use
- Ensure AI systems handling private information meet NY SHIELD Act security requirements
- Financial institutions must include AI systems in NYDFS cybersecurity risk assessments
- Monitor pending New York state AI legislation for additional compliance obligations
Key Deadlines
| Date | Requirement | Who Must Act |
|---|---|---|
| Annual | Independent bias audit for AI hiring tools under NYC Local Law 144 | Employers using automated employment decision tools in NYC |
| Ongoing | Candidate notice at least 10 business days before AI hiring tool use | Employers and agencies using AI in NYC hiring |
| November 2025 | NYDFS amended cybersecurity requirements including AI risk governance | NYDFS-regulated financial institutions |
PolicyGuard automates Local Law 144 bias audit workflows, candidate notification tracking, and NYDFS-compliant AI risk documentation. Stay compliant in the most regulated city in the U.S.
