Bill Text: NY S06852 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes criteria for the sale of automated employment decision tools and provides a civil penalty for violations of such criteria.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO LABOR [S06852 Detail]
Download: New_York-2021-S06852-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6852 2021-2022 Regular Sessions IN SENATE 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: 1 Section 1. The labor law is amended by adding a new section 203-f to 2 read as follows: 3 § 203-f. Sale of automated employment decision tools. 1. For purposes 4 of this section, the following terms shall have the following meanings: 5 a. "Automated employment decision tool" means any system used to 6 filter employment candidates or prospective candidates for hire in a way 7 that establishes a preferred candidate or candidates without relying on 8 candidate-specific assessments by individual decision-makers. Automated 9 employment decision tools shall include personality tests, cognitive 10 ability tests, resume scoring systems and any system whose function is 11 governed by statistical theory, or whose parameters are defined by such 12 systems, including inferential methodologies, linear regression, neural 13 networks, decision trees, random forests and other learning algorithms. 14 b. "Disparate impact report" means an analysis, including but not 15 limited to testing, of the extent to which use of an automated employ- 16 ment decision tool is likely to result in an adverse impact to the 17 detriment of any group on the basis of sex, race or ethnicity. A dispa- 18 rate impact report shall differentiate between candidates who were 19 selected and candidates who were not selected by the tool and shall 20 include a disparate impact analysis as specified in the uniform guide- 21 lines on employee selection procedures promulgated by the United States 22 equal employment opportunity commission. 23 c. "Disability accommodation policy" means an overview of the proce- 24 dures an automated employment decision tool relies on to ensure that 25 candidates with disabilities can receive reasonable accommodations in EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10862-01-1S. 6852 2 1 the hiring process in accordance with the Americans with Disabilities 2 Act of 1990, as amended (Public Law 101-336). 3 d. "Employment decision" means to screen candidates for employment. 4 2. It shall be unlawful to sell or offer for sale an automated employ- 5 ment decision tool that fails to comply with the following provisions: 6 a. A disparate impact report shall be conducted one year prior to the 7 sale or the offering for sale of an automated employment decision tool. 8 A public disclosure report shall be provided to the department no less 9 than annually and shall include the results of the most recent disparate 10 impact report for each automated employment decision tool available for 11 sale in the state. Such report shall also include the disability accom- 12 modation policy of the vendor. 13 b. Every sale of such tool shall include a copy of the most recent 14 public disclosure report at no additional cost. 15 c. No less than annually, a disparate impact report shall be produced 16 to assess the actual impact of any automated employment decision tool 17 used by any employer to select candidates for jobs within the state. 18 Such disparate impact report shall be provided to the employer but shall 19 not be publicly filed and shall be subject to all applicable privileges. 20 d. Such tool shall be sold or offered for sale with a notice stating 21 that such tool is subject to the provisions of this section. 22 3. A person who uses an automated employment decision tool to screen a 23 candidate for an employment decision shall provide notice to each such 24 candidate that an automated employment decision tool subject to dispa- 25 rate impact reporting was used in connection with assessing the candi- 26 date and shall notify each such candidate of the job qualifications or 27 characteristics that such tool was used to assess. 28 4. a. A person who violates any provision of this section or any rule 29 or regulation promulgated thereunder, shall be subject to a civil penal- 30 ty of up to five hundred dollars for the first violation and for each 31 additional violation occurring on the same day as the first violation, 32 and a civil penalty of not less than five hundred dollars, nor more than 33 one thousand five hundred dollars, for each subsequent violation. 34 b. Violations shall accrue on a daily basis for each automated employ- 35 ment decision tool that is sold or offered for sale in violation of 36 subdivision two of this section. 37 c. Each instance in which notice is not provided to a candidate prior 38 to the use of an automated employment decision tool, in violation of 39 subdivision three of this section, shall constitute a single violation 40 and each thirty day period thereafter in which such notice is not 41 provided to such candidate shall constitute a separate violation. 42 5. The commissioner may initiate an investigation if a preponderance 43 of the evidence establishes a suspicion of a violation, including but 44 not limited to, mandating a third party disparate impact audit. The 45 commissioner may also initiate in a court of competent jurisdiction any 46 action or proceeding that may be appropriate or necessary for the 47 correction of any violation issued pursuant to this section, including 48 mandating compliance with the provisions of this section or such other 49 relief as may be appropriate. 50 6. The department may promulgate rules and regulations as it deems 51 necessary to effectuate the purposes of this section, on or before such 52 effective date. 53 § 2. This act shall take effect immediately.
