The news: New York City is now enforcing its AI employment law, which requires companies using AI-infused hiring programs to prove that their technology is unbiased. Details: It's now illegal for employers or employment agencies to assess NYC job candidates and employees using AI tools without doing independent bias audits. They must disclose those results publicly on their websites and inform candidates and current employees living in NYC about their use of AI in hiring. Why it matters: Employers, not vendors, are responsible for compliance, with penalties of $375 for the first violation, $1,350 for a second, and $1,500 for subsequent violations. The law is expected to influence AI hiring practices nationwide. At least four other states — California, New Jersey, New York, and Vermont — and the District of Columbia are also working on laws to regulate AI in hiring. Other states like Illinois and Maryland have already implemented laws restricting certain AI technologies, such as workplace surveillance and candidate screening. What the numbers say: Talent-sifting software is employed by 99% of Fortune 500 companies, and 55% of U.S. HR leaders rely on predictive algorithms for hiring. However, a Pew Research survey reveals that over 70% of Americans oppose the use of AI for final hiring decisions, and 41% are not supportive of using the technology to review job applications.
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