EveryAILaw.comDoes New Jersey Rules Pertaining to Disparate Impact Discrimination (N.J.A.C. 13:16) require Bias & Discrimination Prevention?
New Jersey • enforcing
Yes — 1 provision
Requirements at a glance
This regulation imposes 3 specific requirements for Bias & Discrimination Prevention across 1 provision:
- Disparate impact liability — Employers liable for disparate impact discrimination resulting from use of automated tools and AI in employment
- Scope — Covers hiring, promotion, termination, compensation, and other employment decisions
- Vendor responsibility — Employers cannot disclaim liability by relying on third-party AI vendor tools
Prohibition on AI Disparate Impact in Employment #
Rooted in general anti-discrimination law (NJ Law Against Discrimination), not an AI-specific statute — but N.J.A.C. 13:16 expressly reaches automated and AI decision tools, making employers liable for disparate impact and barring a "third-party vendor" defence.
Requirements
| Requirement | Details |
|---|---|
| Disparate impact liability | Employers liable for disparate impact discrimination resulting from use of automated tools and AI in employment |
| Scope | Covers hiring, promotion, termination, compensation, and other employment decisions |
| Vendor responsibility | Employers cannot disclaim liability by relying on third-party AI vendor tools |
Penalties
| Violation | Fine |
|---|---|
| Non-compliance | Enforcement under NJ Law Against Discrimination |