New York City Department of Consumer and Worker Protection (DCWP) Commissioner Signals Increased Scrutiny of AI in the Workplace and Calls for Expanded Guardrails

Seyfarth Synopsis: In recent remarks delivered at a New York City Policy Forum event, New York City Department of Consumer and Worker Protection ("DCWP") Commissioner Sam Levine signaled that New York City intends to remain at the forefront of efforts to regulate artificial intelligence and algorithmic decision-making affecting workers and consumers. Although the Commissioner did not announce any specific new rulemaking initiatives, his remarks suggest continued regulatory attention on employers' use of AI tools and may foreshadow additional enforcement and legislative activity in this area.

Speaking at a forum focused on the impacts of artificial intelligence on working families, DCWP Commissioner Levine expressed concern that the federal government has largely left AI oversight to industry self-regulation and argued that local governments have an important role to play in establishing safeguards for workers and consumers. He emphasized the potential effects that AI may have on labor markets, workplace decision-making, consumer transactions, and broader economic conditions.

The remarks are notable because they come from the agency responsible for enforcing New York City's pioneering Automated Employment Decision Tool ("AEDT") law, Local Law 144. Local Law 144 requires bias audits and notice obligations for certain AI-driven tools used in hiring and promotion decisions. Since the law took effect, businesses have continued to grapple with its scope, evolving guidance, and practical compliance obligations.  With that context in mind, the Commissioner's comments suggest that DCWP continues to view workplace AI as an area warranting continued attention and regulatory engagement..

Commissioner Levine also framed AI as part of a broader discussion concerning workers' wages, opportunities, and working conditions. His comments further suggest that policymakers are increasingly evaluating AI through a broader worker-protection lens that extends beyond traditional discrimination concerns to encompass economic mobility, workplace opportunity, and other employment-related outcomes. He also criticized the notion that technological development should proceed without meaningful public oversight, indicating support for regulatory frameworks designed to ensure accountability and transparency.

Employers utilizing AI-driven recruiting, screening, assessment, scheduling, productivity monitoring, or other workplace technologies should continue to review their practices carefully and monitor developments at the city, state, and federal levels.

The speech also comes as policymakers across the country are considering additional AI-related employment regulations. Most notably, California Governor Gavin Newsom recently signed several significant California AI-related employment laws, including restrictions on certain forms of AI-powered workplace surveillance, expanded WARN Act disclosure obligations for layoffs attributable to AI or automation, and limitations on employers' ability to rely exclusively on AI when making discipline or termination decisions.

Collectively, these developments suggest that lawmakers are increasingly moving beyond broad AI policy discussions and toward specific workplace obligations governing how employers deploy automated technologies. Consistent with that trend, Commissioner Levine's remarks suggest that New York City intends to remain at the forefront of these discussions and may continue exploring additional safeguards governing employers' use of AI-driven technologies.

The speech also comes against the backdrop of a December 2025 New York State Comptroller audit examining DCWP's enforcement of Local Law 144. The audit questioned the effectiveness of DCWP's existing enforcement approach and recommended more proactive compliance monitoring, stronger complaint-handling processes, and enhanced use of technical expertise in evaluating AEDTs. Although the audit did not announce any new enforcement initiatives, its recommendations could contribute to calls for a more proactive enforcement approach and additional compliance outreach under Local Law 144.

Next Steps for Employers

Employers should consider taking stock of the AI and automated decision-making tools they use across the employment lifecycle and evaluating whether existing policies, vendor relationships, and compliance practices adequately address emerging regulatory requirements. Given New York City's continued focus on workplace AI and California's recent enactment of several AI-related employment laws, employers should also monitor developments closely and assess whether additional governance, oversight, notice, or documentation procedures may be warranted.