Question · NYC Local Law 144
How much is the NYC AEDT audit penalty?
Local Law 144 bars using an automated employment decision tool (AEDT) unless it had an independent bias audit within the past year, the results summary is public, and candidates get advance notice.
01 / The answer
The short answer
Civil penalties are up to $500 for a first violation and for each additional violation on the same day, and $500 to $1,500 for each later violation. Each day a tool is used in violation of the law is a separate violation, and each failure to give a required notice is also a separate violation. The Department of Consumer and Worker Protection has enforced the law since 5 July 2023. A December 2025 State Comptroller audit found that its enforcement missed many potential violations.
02 / The rule
What NYC Local Law 144 requires
Local Law 144 bars using an automated employment decision tool (AEDT) unless it had an independent bias audit within the past year, the results summary is public, and candidates get advance notice. It is one of the few laws that mandates a third-party bias audit of AI hiring tools.
- 01Obtain an independent bias audit of the AEDT no more than one year before use.
- 02Audit must report selection or scoring rates and impact ratios by sex, race/ethnicity and intersectional categories.
- 03Publish a summary of the most recent bias audit results and the tool's distribution date on the employment section of the website.
- 04Notify candidates and employees at least 10 business days before use, including the qualifications assessed and how to request an alternative process or accommodation.
03 / Records
Records to keep
- 01Independent auditor's bias audit report dated within the past year
- 02Archived public audit summary with distribution date
- 03Candidate notices with send dates at least 10 business days before use
- 04Data-type and retention-policy disclosures and request responses
Optional evidence · where Planisphere fits
Keep a record anyone can check
When your team meets a duty, Planisphere can seal the event it reports as a receipt.
A disclosure shown, a review signed, a model change approved: the event your system reports.
The event becomes a sealed receipt, dated and attributed to whoever is signed in.
Paste the receipt into Verify. No account or key.
A record supports your compliance evidence process. It is not a legal finding or a certification. Systems that call Planisphere's gate API can also hold or refuse an action before it runs.
SOURCES
Go back to the source
NYC Department of Consumer and Worker Protection, NYC Rules
NYC Department of Consumer and Worker Protection
Office of the New York State Comptroller
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Related: NYC Local Law 144: the full guide · What is NYC Local Law 144 bias audit? · Who can perform a Local Law 144 bias audit?