Research Library · New York City

Building One Hiring Funnel That Satisfies Local Law 144 Without Geo-Fencing

Summary: The instinct, once an employer realizes Local Law 144 applies whenever a candidate is located in New York City, is to try to build a separate process for New York applicants. In practice this rarely works cleanly, because most employers do not know a candidate's location before they have already been screened. The more durable design is a single funnel built to the law's requirements for every candidate, regardless of geography.

Why geo-fencing usually fails in practice

Geo-fencing requires knowing where a candidate is before the automated tool ever touches their application. For most hiring funnels, that information is not available until after a resume has already been parsed, scored, or ranked, at which point the screening has already happened. Building a genuine pre-screen location gate adds a step most application flows are not designed for, and it has to be maintained correctly across every posting, every source, and every version of the careers page indefinitely.

The failure mode is quiet rather than dramatic. A recruiter shares a role on LinkedIn, a candidate applies from New York through a channel the geo-fence did not anticipate, and the exemption silently fails for that one candidate, with no alert and no record that it happened.

The alternative: one funnel, built to the higher bar

Rather than maintaining two processes that diverge over time, the more workable design applies Local Law 144's requirements to the whole funnel, for every candidate, regardless of where they are.

Universal candidate notice. Rather than conditionally triggering notice for New York candidates, build it into the standard application flow for every role that uses a scoring or ranking tool. This removes the need to know location before the notice fires.

Universal audit coverage. Every tool that scores, ranks, or classifies candidates gets an independent bias audit, regardless of which market it was originally intended for. A tool audited once for its highest-bar jurisdiction does not need a second, lighter version for other markets.

One published audit summary location. A single, consistently updated page on the careers site carries every current audit summary, rather than jurisdiction-specific pages that can drift out of sync with each other.

Records sufficient to reconstruct any decision. Because you are not filtering by location upfront, your records need to support reconstructing why any candidate, anywhere, was screened out, in case a candidate later turns out to have been New York-based.

Why this is usually cheaper than it sounds

The instinct to geo-fence often comes from an assumption that full compliance is expensive and should be minimized to only the jurisdiction that legally requires it. In practice, once an independent audit and a notice process exist at all, extending them to the whole funnel costs little beyond what building them for one segment would have cost. The audit is not priced per candidate location. The notice mechanism, once built into the application flow, does not meaningfully cost more to apply universally than to apply conditionally.

What the universal approach avoids is the ongoing maintenance burden and silent-failure risk of a conditional system that has to correctly detect and branch on location, forever, across every channel a candidate might use to apply.

When a genuinely separate process makes sense

This is not a universal prescription. An employer with a large, clearly segmented hiring operation, such as entirely distinct application systems for different regional offices, may have a natural seam to build around rather than retrofitting one system. The design principle is about avoiding a fragile location-based exemption bolted onto a single funnel, not about mandating a single global process regardless of your underlying architecture.

Frequently asked questions

Do we have to know a candidate's location before applying Local Law 144 protections? No, and that is precisely the point of this approach. Applying the same notice and audit standard to every candidate removes the need to determine location before screening begins.

Does this mean every hire needs an EU AI Act-level process too? Not necessarily. This paper addresses Local Law 144 specifically. Extending a similar universal-by-default logic to EU AI Act obligations is a separate, larger design decision, since that regime's requirements go beyond Local Law 144's.

Is it legal to apply New York's notice requirement to candidates outside New York? Yes. Local Law 144 sets a floor, not a ceiling, for New York candidates. Nothing in the law prohibits extending the same practice to other candidates, and doing so is a common way to simplify the underlying process.

What is the biggest risk in a geo-fenced approach? Silent failure through an unanticipated channel, a job board, a referral link, a scraped posting, that lets a New York candidate into the funnel without the location gate catching it, with no record that it happened.

Does a universal approach cost significantly more? Not typically. The audit and notice infrastructure, once built, extend to the full candidate pool at little additional cost compared to building a conditional, location-aware version of the same system.

PeopleNotResumes designs single, compliant hiring funnels for employers who would rather not maintain a parallel process for one jurisdiction. Our methodology is grounded in behavioural science research from the London School of Economics.