S T A T E O F N E W Y O R K
________________________________________________________________________
6852
2021-2022 Regular Sessions
I N S E N A T E
May 19, 2021
___________
Introduced by Sen. RAMOS -- read twice and ordered printed, and when
printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to establishing criteria for
the sale of automated employment decision tools
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The labor law is amended by adding a new section 203-f to
read as follows:
§ 203-F. SALE OF AUTOMATED EMPLOYMENT DECISION TOOLS. 1. FOR PURPOSES
OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
A. "AUTOMATED EMPLOYMENT DECISION TOOL" MEANS ANY SYSTEM USED TO
FILTER EMPLOYMENT CANDIDATES OR PROSPECTIVE CANDIDATES FOR HIRE IN A WAY
THAT ESTABLISHES A PREFERRED CANDIDATE OR CANDIDATES WITHOUT RELYING ON
CANDIDATE-SPECIFIC ASSESSMENTS BY INDIVIDUAL DECISION-MAKERS. AUTOMATED
EMPLOYMENT DECISION TOOLS SHALL INCLUDE PERSONALITY TESTS, COGNITIVE
ABILITY TESTS, RESUME SCORING SYSTEMS AND ANY SYSTEM WHOSE FUNCTION IS
GOVERNED BY STATISTICAL THEORY, OR WHOSE PARAMETERS ARE DEFINED BY SUCH
SYSTEMS, INCLUDING INFERENTIAL METHODOLOGIES, LINEAR REGRESSION, NEURAL
NETWORKS, DECISION TREES, RANDOM FORESTS AND OTHER LEARNING ALGORITHMS.
B. "DISPARATE IMPACT REPORT" MEANS AN ANALYSIS, INCLUDING BUT NOT
LIMITED TO TESTING, OF THE EXTENT TO WHICH USE OF AN AUTOMATED EMPLOY-
MENT DECISION TOOL IS LIKELY TO RESULT IN AN ADVERSE IMPACT TO THE
DETRIMENT OF ANY GROUP ON THE BASIS OF SEX, RACE OR ETHNICITY. A DISPA-
RATE IMPACT REPORT SHALL DIFFERENTIATE BETWEEN CANDIDATES WHO WERE
SELECTED AND CANDIDATES WHO WERE NOT SELECTED BY THE TOOL AND SHALL
INCLUDE A DISPARATE IMPACT ANALYSIS AS SPECIFIED IN THE UNIFORM GUIDE-
LINES ON EMPLOYEE SELECTION PROCEDURES PROMULGATED BY THE UNITED STATES
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION.
C. "DISABILITY ACCOMMODATION POLICY" MEANS AN OVERVIEW OF THE PROCE-
DURES AN AUTOMATED EMPLOYMENT DECISION TOOL RELIES ON TO ENSURE THAT
CANDIDATES WITH DISABILITIES CAN RECEIVE REASONABLE ACCOMMODATIONS IN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10862-01-1
S. 6852 2
THE HIRING PROCESS IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES
ACT OF 1990, AS AMENDED (PUBLIC LAW 101-336).
D. "EMPLOYMENT DECISION" MEANS TO SCREEN CANDIDATES FOR EMPLOYMENT.
2. IT SHALL BE UNLAWFUL TO SELL OR OFFER FOR SALE AN AUTOMATED EMPLOY-
MENT DECISION TOOL THAT FAILS TO COMPLY WITH THE FOLLOWING PROVISIONS:
A. A DISPARATE IMPACT REPORT SHALL BE CONDUCTED ONE YEAR PRIOR TO THE
SALE OR THE OFFERING FOR SALE OF AN AUTOMATED EMPLOYMENT DECISION TOOL.
A PUBLIC DISCLOSURE REPORT SHALL BE PROVIDED TO THE DEPARTMENT NO LESS
THAN ANNUALLY AND SHALL INCLUDE THE RESULTS OF THE MOST RECENT DISPARATE
IMPACT REPORT FOR EACH AUTOMATED EMPLOYMENT DECISION TOOL AVAILABLE FOR
SALE IN THE STATE. SUCH REPORT SHALL ALSO INCLUDE THE DISABILITY ACCOM-
MODATION POLICY OF THE VENDOR.
B. EVERY SALE OF SUCH TOOL SHALL INCLUDE A COPY OF THE MOST RECENT
PUBLIC DISCLOSURE REPORT AT NO ADDITIONAL COST.
C. NO LESS THAN ANNUALLY, A DISPARATE IMPACT REPORT SHALL BE PRODUCED
TO ASSESS THE ACTUAL IMPACT OF ANY AUTOMATED EMPLOYMENT DECISION TOOL
USED BY ANY EMPLOYER TO SELECT CANDIDATES FOR JOBS WITHIN THE STATE.
SUCH DISPARATE IMPACT REPORT SHALL BE PROVIDED TO THE EMPLOYER BUT SHALL
NOT BE PUBLICLY FILED AND SHALL BE SUBJECT TO ALL APPLICABLE PRIVILEGES.
D. SUCH TOOL SHALL BE SOLD OR OFFERED FOR SALE WITH A NOTICE STATING
THAT SUCH TOOL IS SUBJECT TO THE PROVISIONS OF THIS SECTION.
3. A PERSON WHO USES AN AUTOMATED EMPLOYMENT DECISION TOOL TO SCREEN A
CANDIDATE FOR AN EMPLOYMENT DECISION SHALL PROVIDE NOTICE TO EACH SUCH
CANDIDATE THAT AN AUTOMATED EMPLOYMENT DECISION TOOL SUBJECT TO DISPA-
RATE IMPACT REPORTING WAS USED IN CONNECTION WITH ASSESSING THE CANDI-
DATE AND SHALL NOTIFY EACH SUCH CANDIDATE OF THE JOB QUALIFICATIONS OR
CHARACTERISTICS THAT SUCH TOOL WAS USED TO ASSESS.
4. A. A PERSON WHO VIOLATES ANY PROVISION OF THIS SECTION OR ANY RULE
OR REGULATION PROMULGATED THEREUNDER, SHALL BE SUBJECT TO A CIVIL PENAL-
TY OF UP TO FIVE HUNDRED DOLLARS FOR THE FIRST VIOLATION AND FOR EACH
ADDITIONAL VIOLATION OCCURRING ON THE SAME DAY AS THE FIRST VIOLATION,
AND A CIVIL PENALTY OF NOT LESS THAN FIVE HUNDRED DOLLARS, NOR MORE THAN
ONE THOUSAND FIVE HUNDRED DOLLARS, FOR EACH SUBSEQUENT VIOLATION.
B. VIOLATIONS SHALL ACCRUE ON A DAILY BASIS FOR EACH AUTOMATED EMPLOY-
MENT DECISION TOOL THAT IS SOLD OR OFFERED FOR SALE IN VIOLATION OF
SUBDIVISION TWO OF THIS SECTION.
C. EACH INSTANCE IN WHICH NOTICE IS NOT PROVIDED TO A CANDIDATE PRIOR
TO THE USE OF AN AUTOMATED EMPLOYMENT DECISION TOOL, IN VIOLATION OF
SUBDIVISION THREE OF THIS SECTION, SHALL CONSTITUTE A SINGLE VIOLATION
AND EACH THIRTY DAY PERIOD THEREAFTER IN WHICH SUCH NOTICE IS NOT
PROVIDED TO SUCH CANDIDATE SHALL CONSTITUTE A SEPARATE VIOLATION.
5. THE COMMISSIONER MAY INITIATE AN INVESTIGATION IF A PREPONDERANCE
OF THE EVIDENCE ESTABLISHES A SUSPICION OF A VIOLATION, INCLUDING BUT
NOT LIMITED TO, MANDATING A THIRD PARTY DISPARATE IMPACT AUDIT. THE
COMMISSIONER MAY ALSO INITIATE IN A COURT OF COMPETENT JURISDICTION ANY
ACTION OR PROCEEDING THAT MAY BE APPROPRIATE OR NECESSARY FOR THE
CORRECTION OF ANY VIOLATION ISSUED PURSUANT TO THIS SECTION, INCLUDING
MANDATING COMPLIANCE WITH THE PROVISIONS OF THIS SECTION OR SUCH OTHER
RELIEF AS MAY BE APPROPRIATE.
6. THE DEPARTMENT MAY PROMULGATE RULES AND REGULATIONS AS IT DEEMS
NECESSARY TO EFFECTUATE THE PURPOSES OF THIS SECTION, ON OR BEFORE SUCH
EFFECTIVE DATE.
§ 2. This act shall take effect immediately.