New York City’s automated employment decisions law that was passed in 2021 has begun to be implemented across the city. The law requires employers that use AI tools in the hiring process to disclose this information to potential hires. Companies that rely on AI hiring tools will also be required to connect annual third-party audits of potential bias that exist in these AI tools. The result of the audits will be published to make job seekers aware of potential discrimination that could exist in the hiring process. Companies are also recommended to provide accommodations and an alternative selection process for candidates who are not comfortable with the AI hiring process. However, this law only applies to AI tools that have a direct effect on hiring decisions, and AI software that is only used as a supplement tool is not subject to these rules.
See "New York City companies will have to tell candidates if AI hiring tools are used", Megan Cerullo, CBS News, July 6, 2023