Reference
NYC Local Law 144: compliance and enforcement by the numbers
Updated June 16, 2026 · By Max Langley, AI Audits USA
A sourced reference on what NYC Local Law 144 requires, what it costs to get wrong, how bias is measured, and what the data says about who actually complies. Figures are cited; use them, and link back if they are useful.
What does NYC Local Law 144 require?
Since July 5, 2023, any employer using an automated employment decision tool (AEDT) to screen candidates or employees for a New York City job must commission an annual independent bias audit before using the tool, publish a summary of the results, and notify candidates at least 10 business days in advance.
What are the penalties for non-compliance?
Penalties start at $500 for a first violation and run up to $1,500 per day for continuing violations. Because each day a non-compliant AEDT is used can count as a separate violation, exposure compounds quickly for an employer that screens candidates daily.
How is AI hiring bias actually measured?
The audit calculates the selection rate (or scoring rate) for each sex, race and ethnicity category, and their intersections. It then computes the impact ratio: each group rate divided by the highest group rate. Any ratio below 0.80, the four-fifths rule, is flagged as potential adverse impact.
How many employers actually comply with Local Law 144?
Compliance appears low and enforcement light. A 2025 New York State Comptroller review found the DCWP flagged just one compliance issue among 32 companies it examined, while the Comptroller team identified at least 17 instances of potential non-compliance in the same group. The DCWP has since committed to more proactive enforcement.
Who performs NYC bias audits?
A 2025 academic study of published Local Law 144 audit reports found the market is concentrated: Holistic AI and DCI Consulting each accounted for roughly 20% of reports and BABL AI about 16%, meaning three firms produced over half of all audits. Independent solo and boutique auditors serve much of the remaining long tail.
Sources
- New York City Department of Consumer and Worker Protection (DCWP), Local Law 144 rules and FAQ.
- Office of the New York State Comptroller, 2025 review of DCWP enforcement of Local Law 144, summarized in DLA Piper analysis.
- "Auditing the Audits: Lessons for Algorithmic Accountability from Local Law 144's Bias Audits," ACM FAccT 2025.
Need the audit itself?
We perform the independent Local Law 144 bias audit, sign it, and give you the public summary and candidate notice you are required to publish.
This page is an informational reference, not legal advice. Confirm your obligations with qualified counsel.