Will NYC’s Law on Using AI Hiring Tools Impact Me?

[Fit Small Business | ]( HR Insights from Our Experts [ Will NYC’s Law on Using AI Hiring Tools Impact Me?] Welcome to this week's HR newsletter. We’re so happy to have you!     What is New York City’s new hiring-related law?   [Local Law 144 of 2021](, which took effect on July 5, 2023, regulates the use of automated employment decision tools (AEDTs) for recruiting employees in New York City. These online tools are machine learning and artificial intelligence (AI) solutions designed to make hiring decisions easier for recruiters and hiring managers. Under this law, New York-based employers and employment agencies that use AEDTs are required to: - Conduct a bias audit before using the tool - Publish a summary of the bias audit results on their company website - Notify job applicants and employees who are candidates for promotion that an AI tool will be used to assess them - Give the applicants and employees the opportunity to request reasonable accommodations and use an alternative selection process - Post on their company website a notice about the types of data (such as job qualifications) collected and used by the AEDT         What this means for employers   New York-based employers and recruiting agencies are expected to take responsibility for bias audits, ensuring that an independent auditor conducts this on an annual basis. Companies cannot hire workers using recruitment systems or online solutions with AEDTs until the bias audit is conducted, the audit results are posted on the company’s website, and 10 business days have passed since the audit results are shared online. Failure to comply with the annual bias audit and other stipulations under NYC’s new law will result in fines from $500 (for the first violation) to $1,500 (for subsequent violations). To avoid being fined, check out this law’s [FAQs]( to know more about the audit guidelines and other requirements.         My business isn’t in New York, so why should I care?   Even if your business is located outside of New York City, knowing the laws about using AI tools to hire employees will benefit you in the long run. You might even find yourself having to manage AEDT-related legislation and rulings in the near future. Other states (such as California, New Jersey, and Vermont) and the District of Columbia are working on similar laws that regulate the use of AI tools in finding, selecting, and recruiting workers. 📌 Did You Know? Generative AI tools have been instrumental in helping companies hire employees. Forty-six percent of 3,000 CEOs in an IBM survey said that they were able to [recruit more workers due to generative AI](, while 26% of the respondents are planning to use similar tools in the next 12 months.     Will AI tools really help me find better candidates?   Overall, AI recruiting tools will help improve candidate selection with their unbiased view of screening applicants. They can assist you in matching applicants to the right job posts and determining if a candidate is a good fit for the position. AI tools can even write a job ad for you. You can use them to [search for passive candidates]( and filter through a resume bank (or online applications you received) to find qualified applicants with the skills and job experience that match your hiring requirements. You can also program an AI chatbot to answer questions from potential candidates or ask applicants to submit requirements to your selected email address. 📌 If you want to know more about the recruitment process, check out our [guide to hiring employees](. Having to manually handle all the tasks for finding, hiring, and onboarding employees can be challenging. With Rippling, you can automate the entire employee lifecycle—from hiring to retiring. Aside from offering HR, payroll, benefits, and IT solutions, it has integrated hiring tools designed to streamline recruiting processes, such as headcount planning, job posting, and applicant tracking. [Visit Rippling](     What is human resources (HR) software? Human resources (HR) software systems unify [recruitment](, [payroll](, [training](, [employee engagement](, [performance management](, and other essential HR functions. This provides a secure database of employee data and a centralized view of the company. It also helps HR teams manage each stage of the [employee life cycle]( effectively. [Read More](     What’s new in HR? Check out some of our latest HR content:   [10 Best Gig/Work-on-Demand Apps for Hiring]( Work-on-demand apps and gig hiring platforms connect businesses with professionals for on-demand, short-term, or freelance work. If you’re looking for the best work-on-demand apps, check out our guide, which contains our top picks for small businesses. [READ MORE]( Hiring Minors: Child Labor Laws & Best Practices]( If your business employs minors (those aged 14 to 17), it’s important that you know and follow federal and state child labor laws. Read our guide to learn more about these regulations, including new rules and ongoing proposals that will impact child labor laws. We even have tips on how you can hire minors and create a workplace that’s minor friendly. [READ MORE]( [Best HRIS for Small Business Owners (Updated for 2023)]( With a human resource information system (HRIS), you get a single source of employee information to help prevent manual data entries as you use HR and payroll tools. Most solutions are also capable of taking on the tasks of onboarding, payroll, performance reviews tracking, and more—saving you money and time in managing essential HR processes. [READ MORE](     Meet Fit Small Business’ HR & Payroll Experts   [-Jennifer Hartman, HR Staff Writer & Human Resources Expert]( Throughout her career, Heather has worked to help hundreds of small business owners manage many aspects of their business, from bookkeeping to accounting to HR. Her experience has allowed her to learn firsthand the payroll needs of small business owners. [Heather Landau]( [-Jennifer Hartman, HR Staff Writer & Human Resources Expert]( Jen has more than 20 years of writing and content experience, working with small businesses and Fortune 100 companies. She worked as an HR generalist for over a decade, providing accounting, payroll, and HR expertise. [Jennifer Soper]( [-Jennifer Hartman, HR Staff Writer & Human Resources Expert]( Robie is a payroll and HR expert at Fit Small Business, focusing on software. She has over eight years of content writing experience, handling different topics. Robie also worked as an HR specialist for 10 years where she managed various facets of HR—from payroll and benefits to employee services and HR systems. [Robie Ann Ferrer]( [-Jennifer Hartman, HR Staff Writer & Human Resources Expert]( Juvy has more than 10 years of experience writing product reviews and providing online content for small businesses. Juvy was also a college instructor. She believes that her teaching background, writing experience, and supportive team members are crucial in providing the best answers to readers. [Juvy Vallescas]( [-Jennifer Hartman, HR Staff Writer & Human Resources Expert]( Genevieve has more than 13 years of writing experience, working with different clients in various industries. She has ghostwritten several books and ebooks on marketing and leadership. Genevieve also worked as an HR Head of a local manufacturing company and has helped small businesses set up their business and HR processes. [Genevieve Que](     Are you planning to use social media to boost your employer brand? Check out next week’s HR newsletter for everything you need to know about this topic. Until next time, Heather Landau, Jennifer Soper, Robie Ann Ferrer, Juvy Vallescas, and Genevieve Que   For more quality resources on growing your small business: [Marketing]( | [Financing]( | [Accounting]( | [HR]( | [Retail]( | [Ecommerce]( | [Sales]( [Facebook]( [Twitter]( [LinkedIn]( [Alternate text] Want to change what you receive in your inbox? [Update Your Preferences]( [Image]   We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Our business model allows us to bring you the best answers to your questions, without editorial biases or cluttering the site with banner ads that everyone hates. The solutions we recommend to business owners often include products and services. Our expert team of writers make recommendations in our buyer’s guides and reviews based on independent quantitative and qualitative assessments. To maintain editorial independence from our business operations, our writers and editors always have the final say on whether a partner is included anywhere on our site. [Read our editorial policy here](. When a product or service is included in an article or an email, we sometimes earn a fee or a commission from the advertising partner based on readers’ actions. Learn more about [how we make money]( and see a list of [our full list of partners](.   This message was meant for: {EMAIL} Our HQ: Fit Small Business - 355 Lexington Ave, 18th Floor, New York, NY 10017, United States Want to give feedback? Reply to this email! We monitor it daily. This helps us make your subscriber experience better. Want to change the content you're receiving? [Update your preferences](. Want to stop receiving emails all together? [Unsubscribe](.