NYC’s AI Bias Law Isn’t Working + Demystifying Employee Ratings

While We Were Working: Your Weekly Small Business HR News and Strategy Podcast

Summary
In this episode, Joey Price and Sommer Ketron discuss New York City’s AI bias law and the challenges it faces in terms of enforcement and compliance. They also evaluate the use of numerical ratings in performance reviews, highlighting the pros and cons of this approach. The conversation emphasizes the importance of clear communication in performance management and offers assistance in developing effective performance rating systems.

Takeaways
New York City’s AI bias law, which requires employers to audit automated employment decision tools for potential bias, has faced challenges in terms of compliance and enforcement.
The law’s narrow scope and lack of awareness among employers contribute to low compliance rates.
Numerical ratings in performance reviews provide clarity and a means of quantifying performance, but they can also be subjective and demotivating.
Alternative approaches to performance reviews that focus on feedback and improvement without assigning numerical scores may be more effective.
Clear communication and evaluation of performance rating systems are crucial for successful performance management.

Chapters
00:00 - Introduction and Overview
01:54 - Discussion of New York City’s AI Bias Law
03:55 - Challenges and Non-Compliance with the Law
08:30 - Enforcement and Compliance Issues
15:10 - Numerical Ratings in Performance Reviews and Pros and Cons of Numerical Ratings
20:00 - Clarity and Subjectivity of Numerical Ratings
26:01 - Alternative Approaches to Performance Reviews
28:00 - Importance of Communication in Performance Management
28:27 - Assistance with Performance Rating Systems
30:07 - Conclusion