New York State Comptroller Thomas P. DiNapoli released an audit criticizing New York City’s Department of Consumer and Worker Protection (DCWP) for its enforcement of Local Law 144, which regulates the use of artificial intelligence (AI) in employment decisions. The audit revealed that DCWP has had difficulty identifying employers who do not comply with the law, especially when companies fail to disclose their use of AI tools or post required bias audits.
DiNapoli stated, “Job seekers deserve a fair and transparent process when they apply for work, and that includes knowing if a company is using artificial intelligence to evaluate their resumes or video interviews, and whether the technology was vetted to eliminate biases. When New Yorkers have concerns about employers using AI in hiring, it’s not easy to get help. New York City’s Department of Consumer and Worker Protection must do more to ensure that employers follow the law and gives complaints the attention they rightfully deserve.”
Automated Employment Decision Tools (AEDTs), which are powered by AI or data analytics, can make hiring more efficient but also risk reinforcing existing biases. In response to these concerns, Local Law 144 was passed in 2021 by the New York City Council. This law requires employers and employment agencies to conduct a bias audit on AEDTs within one year before use, publish audit results online, and notify job candidates about how these tools will be used.
According to DiNapoli’s audit, DCWP initially educated stakeholders about the new requirements but did not continue public outreach after May 2023. The agency reviewed websites from 32 employers and vendors for compliance but identified only one likely violation. However, DiNapoli’s auditors found this review missed many problems; their own review uncovered 17 possible cases of non-compliance among the same group.
The audit also noted that DCWP did not use procedures developed by the NYC Office of Technology and Innovation (OTI), despite an agreement for OTI to provide technical support. Furthermore, when complaints were submitted through NYC’s 311 system or via DCWP’s website, many were misdirected or unclear—potentially leading to underreporting of issues related to AEDTs. Auditors made test calls through the city’s complaint system: only three out of twelve calls were properly routed to DCWP; most others were sent incorrectly elsewhere.
Thirteen recommendations were made in the audit aimed at improving oversight and handling of complaints related to AEDT use. While DCWP disagreed with some findings, it agreed to implement most recommendations either fully or partially. The agency noted that tracking non-compliance is difficult because it often depends on whether employers voluntarily disclose information about their use of AI tools.
The full response from DCWP is included in the published audit report.
More details on this issue can be found in related reports such as those from the Office of Information Technology Services/New York State Office for the Aging/Department of Corrections and Community Supervision/Department of Motor Vehicles/Department of Transportation regarding statewide AI governance (April 2025), as well as guidance from the New York City Office of Technology and Innovation on artificial intelligence governance (February 2023).
An automated employment decision tool refers broadly to any computational process using AI or machine learning that significantly assists or replaces human judgment during hiring decisions.
