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Operationalizing NYC Local Law 144 in Modulos ​

Modulos has one Framework for NYC Local Law 144 of 2021 (N.Y.C. Administrative Code §§ 20-870 to 20-874) and the DCWP rules (6 RCNY §§ 5-300 to 5-304): MFF-27 NYC Local Law 144. You add it to an AI System of the type AI Application. Modulos has no Framework for Local Law 144 at the Organization level.

This page tells you how to use MFF-27: the AI System for each tool, the Requirements, the steps, and the items with no Control. The Controls of each Requirement, their Guidance, and the examples of Evidence are in Modulos. On this page, "you" is the employer or employment agency that uses the automated employment decision tool (AEDT).

One AI System for each AEDT ​

  • One AI System for each tool. Use one AI System for each AEDT. Modulos does not enforce this structure. In the statute and the rules, the bias audit, the summary of results, the distribution date, and the notice are items for each tool ("such tool", "the AEDT").
  • No scoping questionnaire. MFF-27 has no scoping questionnaire. You record the determination of scope in a Control of MRF-476 (step 1 below).
  • The employer or employment agency. In § 20-871(a) and (b), the obligations of Local Law 144 are for the employer or employment agency that uses the AEDT. MFF-27 gives no different procedure for a vendor. For the statute and the DCWP FAQ (not law) on the vendor, see Scope and applicability.

The Requirements ​

MFF-27 gives one Requirement for the AEDT determination and one Requirement for each group of Local Law 144 obligations. In Modulos, each Requirement gives its sources and its Controls.

RequirementProvisions of the law and the rulesPage for the law
MRF-476 AEDT applicability determination§ 20-870, 6 RCNY § 5-300Scope and applicability
MRF-477 Annual independent bias audit§§ 20-870 and 20-871(a)(1), 6 RCNY §§ 5-300 and 5-301The bias audit and its data
MRF-478 Bias audit data requirements6 RCNY §§ 5-300 and 5-302The bias audit and its data
MRF-479 Publication of bias audit results§ 20-871(a)(2), 6 RCNY § 5-303Publication of bias audit results
MRF-480 Candidate and employee notice§ 20-871(b)(1)–(2), 6 RCNY § 5-304(a)–(c)Candidate and employee notice
MRF-481 Data transparency disclosures§ 20-871(b)(3), 6 RCNY § 5-304(d)Data transparency disclosures

For the Controls that MFF-27 and other Frameworks map, see Control overlap.

Steps that Modulos recommends ​

Modulos recommends this sequence for an employer or employment agency that uses MFF-27 for Local Law 144. Some items in the steps are obligations of the law, and each step links to the page that gives them. Other items are only Modulos procedure, for example to record the determination of scope and to do step 1 again when the tool changes. The law and the rules give no obligation to record the determination of scope. In these steps, "you" is the employer or employment agency that uses the tool.

  1. Find if the tool is in scope (MRF-476). Apply the AEDT definition and the "used in the city" test from Scope and applicability. Modulos recommends that you record the determination and the facts for it in a Control of MRF-476. Modulos also recommends that you do this step again after a change. A change can be in the tool, its output, or its function in the hiring or promotion process.

  2. Get the bias audit (MRF-477, MRF-478). For the rules, see The bias audit and its data.

    • Make sure that the auditor is an independent auditor.
    • Find the calculations that apply to the functions of the tool. If the tool selects or classifies and also gives scores, the two sets of calculations apply.
    • Select the data. A bias audit can use your historical data, or the historical data of one or more other employers or employment agencies.
    • If the bias audit uses the historical data of other employers or employment agencies, make sure that you gave your historical data to the auditor. This condition does not apply if you did not use the tool before.
    • A bias audit with test data is permitted only if the available historical data is not sufficient for a statistically significant bias audit. Then the summary of results must "explain why historical data was not used and describe how the test data used was generated and obtained".
    • Modulos recommends that you record the date of the bias audit and the period of use to which it applies.
    • Do not use the tool more than one year after the most recent bias audit. If you continue to use the tool, get the next bias audit before that date.

  3. Post the results before use (MRF-479). Before use, post the date of the most recent bias audit, the summary of results, and the distribution date. Post them on the employment section of your website, in a clear and conspicuous manner. As an alternative, use an active hyperlink that is clearly identified as a link to results of the bias audit. Modulos recommends that you record each date when you post. For the law, see Publication of bias audit results.

  4. Give the notice before use (MRF-480). Give the notice to each employee and each candidate who applied for a position, if all of these conditions apply:

    • You screen that person with the tool for an employment decision.
    • That person resides in the city.

    Give the notice not less than 10 business days before the tool assesses that person. For the methods, see Candidate and employee notice.

  5. Disclose the data information (MRF-481). Post the data type, the data source, your data retention policy, and the instructions for a written request. Post each on the employment section of your website, in a clear and conspicuous manner. Give the information not more than 30 days after a written request, if all of these conditions apply:

    • A candidate for employment or an employee considered for promotion makes the written request.
    • You screen that person with the tool for an employment decision.
    • That person resides in the city.

    If disclosure violates local, state, or federal law, or interferes with a law enforcement investigation, do not disclose the information. Then give the candidate or employee an explanation (6 RCNY § 5-304(d)(3)). For these rules, see Data transparency disclosures.

  6. Keep the items up to date (MRF-477, MRF-479). If you continue to use the tool, get each new bias audit. Post its summary of results before you continue. Keep the summary of results and the distribution date posted for not less than six months. The six months start at the latest use of the tool for an employment decision. If the tool changes, Modulos recommends that you do step 1 again. For the law, see The bias audit and its data and Publication of bias audit results.

When each Control of a Requirement is Executed, Out of scope, or Archived, the Requirement Owner does a Review of the Controls and marks the Requirement as Fulfilled. For this procedure, see Reviews & Statuses.

Items with no Control in the Framework ​

For Local Law 144, MFF-27 has no Control for these three items.

  • No Control for steps after the bias audit. DCWP FAQ II.2 (not law) tells you that the law "does not require any specific actions based on the results of a bias audit". It also tells you that employers and employment agencies "must comply with all relevant Anti-Discrimination laws and rules to determine any necessary actions based on the results of a bias audit". Local Law 144 and its rules set no minimum impact ratio. Thus the four-fifths rule of the EEOC Uniform Guidelines is not a Local Law 144 minimum (The effect of the results).
  • No Control for an alternative selection process. The notice must include instructions for how to request an alternative selection process or "a reasonable accommodation under other laws, if available" (6 RCNY § 5-304(a)). But "Nothing in this subchapter requires an employer or employment agency to provide an alternative selection process." See Publication and notices.
  • No Control for the data retention policy. MRF-481 holds only the disclosure of the data retention policy for the tool. MFF-27 has no Control for the policy: that you have the policy and that you enforce it.

Where to go next ​

NYC Local Law 144

The obligations of the law, the employers and employment agencies that must obey it, the enforcement and the penalties, and the structure of the Framework

Scope and applicability

The AEDT definition, the test for use in the city, and the employer or employment agency with the obligations

The bias audit and its data

The independent auditor, the calculations, the categories, the exclusion of a category that is less than 2 percent of the data, and the data rules

Publication and notices

The posted summary of results, the notice not less than 10 business days before use, and the data disclosures

Disclaimer

This page gives general information only. It is not legal advice. Compare this page with the text of N.Y.C. Administrative Code §§ 20-870 to 20-874 and 6 RCNY §§ 5-300 to 5-304. Use the text that is publicly available at the time of your decision. Speak to a lawyer.