Employers must demonstrate AI hiring fairness

Employers will soon face stricter rules for when they can use resume-scanning software and other automated hiring tools.

The council’s Committee on Technology approved Wednesday a bill that would bar employers from using automated hiring tools unless the software has undergone an independent audit for racial and gender biases, and the business notifies candidates that automated tools are being used. The vote set the bill up for a final vote of approval this afternoon.

Violations could result in a $500 fine for any type of business using software that has not been audited. New York City is the first municipality to regulate the use of such tools, which

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