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# NYC Local Law 144 bias audit, by Holistic AI

Holistic AI carries out independent bias audits of automated employment decision tools (AEDTs) under New York City Local Law 144, and supports the notification and transparency steps the law also requires.

## Who it is for

Employers and employment agencies that use an automated employment decision tool to evaluate job candidates, or employees for promotion, who reside in New York City. The employer can be based anywhere in the world.

## What is included

- **Independent bias audit**: Selection or scoring rates and impact ratios by sex, by race/ethnicity and by intersectional categories, calculated the way Local Law 144 specifies.
- **Summary of Results page**: The summary the law requires you to publish, prepared and hosted for you.
- **Notification support**: Help with the notices the law requires you to give candidates and employees about the use of an AEDT.
- **Mitigation recommendations**: Custom recommendations where the audit flags differences between groups.
- **Education and knowledge exchange**: Briefings for your team on the bias audit requirements and how they apply to your tools.

## Tools we audit

- Resume screeners
- Interview scoring systems
- Candidate matching and ranking models
- Skills assessment platforms
- Psychometric tools
- Mobility and succession planning tools
- Workforce management platforms
- AI recruitment agents
- Performance management systems

This covers traditional machine learning, such as recommender systems and scoring algorithms, and large language model systems, including chatbots and AI agents.

## HR systems we audit data from

- Workday
- Greenhouse
- Lever
- iCIMS
- SAP SuccessFactors

## How compliance works

1. **Confirm scope**: Work out whether your tool is an AEDT covered by Local Law 144, in consultation with your counsel.
2. **Appoint an independent auditor**: The auditor must be impartial: not involved in building, selling or using the tool, and with no financial interest in the employer or vendor.
3. **Prepare the data**: Historical data from real use of the tool is preferred. Test data can be used where historical data is insufficient, and that must be disclosed.
4. **Run the audit and publish**: The audit is completed and the Summary of Results is published.
5. **Set up notifications**: Put in place the notices to candidates and employees that the law requires.

## Track record

- **5+** years auditing HR technology
- **300+** employment bias audits
- **100+** audits under NYC Local Law 144

The audit team includes specialists in employment law, HR analytics, industrial-organizational psychology and workforce equity.

## Questions and answers

### Who needs a Local Law 144 bias audit?

Any employer or employment agency that uses an automated employment decision tool to evaluate candidates for employment, or employees for promotion, who reside in New York City. Companies outside New York are in scope if the people being evaluated live in the city.

### How often is a bias audit required?

Every year. Local Law 144 requires an annual independent and impartial bias audit of each automated employment decision tool.

### What does the bias audit measure?

Whether the tool has a disparate impact by sex and by race/ethnicity. For tools that select or reject, the auditor compares each category's selection rate with the highest category's selection rate (the impact ratio). For tools that score, scores are split at the median and the same comparison is made on scoring rates. Ratios are calculated for standalone and intersectional categories.

### What data do we need to provide?

A record of the tool's results with each person's sex, race/ethnicity and outcome (selected or not, or a score). Historical data from real use is preferred. Exports from Workday, Greenhouse, Lever, iCIMS and SAP SuccessFactors are common inputs.

### Can the audit use test data?

Yes, where historical data is insufficient or the tool has not been used yet, provided the use of test data is disclosed.

### What do we have to publish?

A Summary of Results of the bias audit. Holistic AI prepares and hosts the Summary of Results page as part of the service.

### What are the penalties for not complying?

Up to $500 for a first violation and each additional violation on the same day, and up to $1,500 for subsequent violations. Failing to have a bias audit and failing to give notice are separate violations.

### Can we check our numbers before commissioning an audit?

Yes. The free bias check at https://www.nycbiasaudit.com/bias-check calculates selection rates and impact ratios by sex and race/ethnicity in your browser. It is not an independent audit and does not cover intersectional categories.

### How much does a bias audit cost, and how long does it take?

Prices and timelines are not published on this site. Ask the team for a quote at https://www.nycbiasaudit.com/demo or we@holisticai.com.

## Next step

To commission a bias audit or ask a question, book a call at https://www.nycbiasaudit.com/demo or email we@holisticai.com.