AI Frontier Institute

Establishes criteria for the use of automated employment decision tools; provides for enforcement for violations of such criteria.

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New York Assembly Bill 3914 (2025-2026 session), introduced by Assembly Member Alvarez on January 30, 2025, amends the Labor Law by adding a new Section 203-g to regulate the use of automated employment decision tools (AEDTs). The bill defines an AEDT broadly to include personality tests, cognitive ability tests, resume scoring systems, and systems governed by statistical or machine-learning methods such as neural networks, decision trees, and random forests. Under Section 203-g(2), employers are prohibited from using AEDTs that do not comply with three core requirements: (1) at least annually, an impartial disparate impact analysis must be conducted to assess whether the tool adversely affects candidates on the basis of sex, race, ethnicity, or other protected classes under Article 15 of the Executive Law; (2) a summary of the most recent disparate impact analysis and the tool's distribution date must be posted publicly on the employer's or employment agency's website before the tool is used; and (3) employers must submit that summary to the state Department of Labor at least annually. The full disparate impact analysis is not required to be publicly filed and remains subject to applicable privileges. Under Sections 203-g(3) and (4), both the Attorney General and the Labor Commissioner may investigate suspected violations based on a preponderance of evidence and may seek court-ordered compliance or other appropriate relief. Section 203-g(5) authorizes the Department to promulgate implementing regulations. The act takes effect immediately upon passage.

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