How Small Businesses in NYC Can Leverage AEDTs While Meeting Notification Requirements

As technology evolves, small businesses in New York City are increasingly turning to Automated Employment Decision Tools (AEDTs) to streamline their hiring processes. These tools can offer significant efficiencies, but their use is regulated under NYC Law 144. This article provides an in-depth look at how small businesses can effectively leverage AEDTs while ensuring compliance with notification and consent requirements.

Understanding AEDTs

Automated Employment Decision Tools (AEDTs) refer to any computational processes, such as those derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that assist in making employment decisions. These tools are designed to evaluate resumes, conduct interviews, assess skills, and predict employee performance, helping businesses make more informed hiring decisions.

Examples of AEDTs Used by Businesses in the US

1. Resume Screening Software:
   • Example: Jobscan
   • Usage: This tool scans resumes to identify relevant skills, qualifications, and experiences based on job descriptions. It helps businesses filter out unqualified candidates quickly.
2. Video Interview Analysis Platforms:
   • Example: HireVue
   • Usage: HireVue uses AI to analyze candidates’ facial expressions, body language, and speech patterns during video interviews, providing insights into their communication skills and suitability for the role.
3. Pre-employment Assessment Tests:
   • Example: Pymetrics
   • Usage: Pymetrics offers AI-driven assessments to evaluate candidates’ cognitive abilities, personality traits, and behavioral tendencies, helping employers predict job performance and cultural fit.
4. Chatbots for Candidate Engagement:
   • Example: Mya
   • Usage: Mya interacts with candidates via messaging platforms, providing information about job openings, answering questions, scheduling interviews, and collecting basic applicant information.
5. Predictive Analytics for Employee Performance:
   • Example: Cornerstone OnDemand
   • Usage: This tool uses historical data to predict future employee performance, helping employers make data-driven decisions about hiring, training, and workforce planning.

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Notification and Consent Requirements

NYC Law 144 mandates specific notification and consent requirements for businesses using AEDTs. These requirements ensure transparency and fairness in the hiring process.

Step-by-Step Guide to Meeting Notification and Consent Requirements

1. Identify Candidates:
   • Determine which candidates will be subject to AEDTs during the hiring or promotion process.
2. Prepare Notification Content:
   • Create a clear notification that includes:
     • The type of AEDT being used (e.g., resume screening software, video interview analysis platform).
     • The job qualifications and characteristics the AEDT evaluates (e.g., skills, experience, cultural fit).
3. Timing of Notification:
   • Ensure that candidates receive the notification at least ten business days before the AEDT is used.
   • Provide the notification early in the application or interview process to allow candidates ample time to review and respond.
4. Delivery of Notification:
   • Send the notification via email or through the company’s applicant tracking system (ATS).
   • Include the notification in the job posting or application portal to ensure all candidates are informed.
5. Obtain Explicit Consent:
   • Clearly state in the notification that candidates must provide explicit consent for the use of AEDTs.
   • Include a checkbox or acknowledgment section where candidates can indicate their consent.
6. Options for Candidates:
   • Provide candidates with the option to opt-out of the AEDT process if they do not wish to participate.
   • Explain alternative methods for candidates to submit their application or participate in the hiring process if they choose to opt-out of AEDT usage.
7. Document Consent:
   • Maintain records of candidates’ consent, documenting the date and method of consent (e.g., electronic signature, checkbox acknowledgment).
8. Follow Up:
   • Follow up with candidates who do not provide explicit consent to ensure they understand the implications and offer alternative options if necessary.
   • Address any questions or concerns raised by candidates regarding the use of AEDTs.
9. Update Policies and Procedures:
   • Ensure company policies and procedures reflect the requirement to obtain explicit consent for the use of AEDTs.
   • Train HR staff and recruiters on the proper implementation of notification and consent procedures.

Practical Implementation

Example Notification:

Subject: Notification of Automated Employment Decision Tool Usage

Dear [Candidate],

We are excited to consider you for the [Position Title] role at [Company Name]. As part of our hiring process, we utilize an Automated Employment Decision Tool (AEDT) to assist in evaluating candidates’ qualifications and characteristics.

The AEDT we use is a resume screening tool that analyzes applicants’ resumes to identify relevant skills, experience, and cultural fit for the position. This tool helps us streamline our hiring process and ensure fairness and consistency in our decision-making.

We want to inform you that your application will be evaluated using this AEDT. The tool will assess your qualifications based on the job requirements outlined in the job description, including [list specific qualifications or characteristics].

Your privacy and informed consent are important to us. By continuing with the application process, you acknowledge and provide explicit consent for the use of the AEDT in evaluating your application for the [Position Title] role.

If you have any questions or concerns about the AEDT or our hiring process, please feel free to contact us at [contact information].

Thank you for considering [Company Name] as your potential employer.

Sincerely,
[Your Name]
[Your Title]
[Company Name]

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The Wrap-Up

By leveraging AEDTs, small businesses in NYC can enhance their hiring processes, making them more efficient and effective. However, it is crucial to comply with NYC Law 144’s notification and consent requirements to ensure transparency and fairness. By following the steps outlined in this article, businesses can navigate these requirements successfully, fostering a more equitable hiring environment.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Small business owners should consult with a qualified attorney to ensure full compliance with NYC Law 144 and any other applicable laws and regulations.