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How to Commission a Bias Audit: A Step-by-Step Guide for Employers

If you use AI tools for hiring in NYC or Colorado, you need a bias audit. Here's exactly how to find an auditor, what the process looks like, and how to post results.

How to Commission a Bias Audit: A Step-by-Step Guide for Employers

If you use AI tools in your hiring process and have employees or applicants in New York City, you need a bias audit. Here's the complete guide.

Step 1: Identify What Needs Auditing

Make a list of every AI tool used in your hiring or promotion process:

  • Resume screening software
  • Video interview analysis tools (Hirevue, Spark Hire with AI features, etc.)
  • Candidate scoring or ranking tools
  • Skills assessment platforms with AI scoring
  • ATS systems that use AI to filter applications

For NYC LL 144, any of these that make or assist in making decisions about NYC-based roles must be audited.

Step 2: Find a Qualified Auditor

The law requires a third-party bias auditor — an independent entity that conducts a bias audit and is not your software vendor.

What to look for in an auditor:

  • Experience auditing employment AI specifically
  • Knowledge of NYC LL 144 requirements
  • Ability to produce the required audit summary format
  • Statistical methodology experience (disparate impact analysis)

Browse bias auditors in our directory →

Step 3: Provide the Auditor with Required Data

Your auditor will need:

  • Historical decision data from your AEDT (12 months recommended)
  • Demographic data on candidates (or methodology for collecting it)
  • Documentation of what the AEDT evaluates and outputs
  • Your current use policies for the tool

Data collection challenge: Many employers don't have voluntary demographic data from candidates. Auditors have developed methodologies to handle this, including using geographic or surname-based demographic estimation (Bayesian Improved Surname Geocoding / BISG) when direct data isn't available.

Step 4: Review the Audit Results

The audit will produce:

  • Selection rates by sex, race/ethnicity, and intersectional categories
  • Impact ratios comparing selection rates across groups
  • Whether any group falls below the 80% threshold (4/5ths rule)
  • Summary of methodology used

Review results carefully. If disparate impact is found, you'll need to decide whether to continue using the tool, modify it, or stop using it.

Step 5: Post the Required Summary

Once you have the audit, you must post a summary that includes:

  • Distribution date of the bias audit
  • Summary of results including selection rates and impact ratios by category
  • Data used in the audit

Post it:

  • On your careers page (publicly visible, not behind a login)
  • In any job postings where the AEDT is used

The summary must be posted before you use the AEDT.

Step 6: Add Candidate Notices

Add a notice to all job postings or application materials stating:

  • That an automated employment decision tool is used
  • What the AEDT evaluates (e.g., video interview analysis, resume screening)
  • That candidates may request an alternative selection process (if offered)

Step 7: Set Your Annual Audit Calendar

Bias audits must be repeated at least annually and whenever there is a material change to the AEDT.

Set a calendar reminder 60 days before your audit anniversary to:

  1. Contact your auditor to begin the new audit
  2. Collect updated decision data
  3. Update your public posting with new results before the anniversary date
  4. Resources

Bias AuditNYC LL 144Hiring AI

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Not legal advice. This article is for informational purposes only. Always consult a qualified attorney for compliance decisions.