Extended definition
An automated employment decision tool is a legal category before it’s a type of software. The phrase comes from New York City’s Local Law 144 of 2021, which bars employers and employment agencies from using one unless it has had a bias audit within the past year, information about the audit is public, and candidates or employees have been given notice.
The law defines an AEDT as any computational process derived from machine learning, statistical modeling, data analytics or artificial intelligence that issues simplified output, such as a score, classification or recommendation, used to substantially assist or replace discretionary decision making. The decisions it means are screening candidates for employment, or employees for promotion, within the city.
The law also rules out tools that don’t drive those decisions, and gives examples: a junk email filter, firewall, antivirus software, calculator, spreadsheet or database. So an AEDT is defined by what its output does to a decision, not by whether a vendor markets it as AI.
How to tell whether a tool is an AEDT
The phrase that does the work is “substantially assist or replace.” The rules adopted by the city’s Department of Consumer and Worker Protection (DCWP) say a tool meets it when the employer does one of three things:
- Relies solely on its output — A score, tag, ranking or classification decides the outcome, with no other factors considered.
- Weights its output above everything else — The output is one of several criteria but counts for more than any other.
- Lets its output overrule other conclusions — The output can override what other factors, including human decision-making, pointed to.
Screening counts. DCWP’s guidance says employment decisions include screening, so a tool that substantially helps decide who moves forward at any point in hiring or promotion can be in scope, even if a person makes the final offer. Tools that score, rank or filter people, such as some resume screeners, assessments and AI interviewers, are the ones to check. The requirements apply to hiring and promotion only, and DCWP’s FAQ lists a job located in a New York City office, at least part time, as one of the conditions that bring a role in scope.
Why automated employment decision tools matter
Once a tool counts as an AEDT, Local Law 144’s requirements apply before it’s used:
- A bias audit within the past year, with information about it made public. The mechanics are covered under AI bias audit.
- Notice to candidates who are New York City residents, 10 business days before the tool is used.
- Instructions for requesting an alternative — The notice must explain how to request an alternative selection process or a reasonable accommodation, if available. The rules don’t require the employer to provide an alternative process.
Responsibility sits with the employer or agency using the tool. And the law doesn’t require any specific action based on the results. Anti-discrimination laws still apply, which is why a weak audit result is a reason to look harder at the tool, not a box ticked.
New York City isn’t the only place using the idea. California’s Civil Rights Council regulations on employment discrimination arising from AI, algorithms and other “automated-decision systems” took effect on October 1, 2025. The EU AI Act lists AI systems for recruitment or selection, including filtering applications and evaluating candidates, among its high-risk uses. The names differ, but the question is the same: is software making or heavily shaping a decision about a person, and is it introducing algorithmic bias?
Common mistakes and misconceptions about automated employment decision tools
- Assuming a human in the loop takes a tool out of scope — Under the NYC test, what counts is whether the output decides, outweighs every other criterion or overrules other conclusions. A person signing off at the end doesn’t settle it.
- Leaving compliance to the vendor — DCWP’s FAQ says the vendor that created an AEDT isn’t responsible for its bias audit; the employer or agency is, though a vendor can have an independent auditor audit its tool.
- Reading “AEDT” as a quality label — It describes what a tool does, not whether it works or is fair.
- Treating one city’s definition as universal — Other rules use different terms and tests. An AI recruiting agent that chains several steps may raise the question at more than one of them.
This page describes the rules; it isn’t legal advice. For a specific tool or role, check DCWP’s guidance and talk to employment counsel.
Frequently asked questions
What does AEDT mean in recruiting?
In recruiting, AEDT stands for automated employment decision tool: software whose score, ranking or recommendation substantially assists or replaces a decision about who to hire or promote. The term comes from New York City's Local Law 144, so it's mostly used in that legal sense. Outside recruiting, the same letters usually mean Australian Eastern Daylight Time, which is why the full phrase is clearer in job postings and policies.
What is the NYC AEDT law?
It's Local Law 144 of 2021, enforced by the city's Department of Consumer and Worker Protection (DCWP). It bars employers and employment agencies from using an automated employment decision tool unless the tool has had a bias audit within the past year, information about that audit is public, and candidates or employees have been notified. It covers hiring and promotion decisions, including screening, for roles that fall within the city's rules.
Can candidates opt out of an AEDT?
They can ask. Under New York City's rules, the notice candidates receive must explain how to request an alternative selection process or a reasonable accommodation under other laws, if one is available. The rules don't require the employer to provide an alternative selection process, so what happens next depends on the employer and on any other laws that apply. This describes the rules; it isn't legal advice.
Should I opt out of an AEDT?
That's your decision, and nothing here is legal advice. It helps to know what you'd be choosing between, so ask the employer what the alternative process involves and whether a person reviews it. If you need an adjustment because of a disability, you can ask for a reasonable accommodation, and the notice should tell you how. Opting out of a tool isn't opting out of assessment; the alternative will still evaluate you.
Is a resume screening tool an AEDT?
It can be. Under New York City's definition, what matters is whether the tool issues a score, classification or recommendation that substantially assists or replaces the decision about who moves forward, and DCWP says screening counts as an employment decision. A tool that only stores applications may not meet that test. One that ranks or rejects applicants is the kind to check carefully against the rules, with counsel if needed.