Emerging New Development on Employer’s Use of AI

Today, the U.S. Equal Employment Opportunity Commission (EEOC) issued guidance explaining the application of Title VII of the Civil Rights Act of 1964 to automated systems that incorporate artificial intelligence in a range of HR-related uses.

In doing so, the EEOC explained that without proper safeguards, employers might violate Title VII when they use AI to select new employees, monitor performance and determine pay or promotions.  Employers will be held responsible for any of these violations, even if the AI tool is administered by a third party, such as a vendor paid by the employer to deliver the service.

As stated by the EEOC,  “As employers increasingly turn to AI and other automated systems, they must ensure that the use of these technologies aligns with the civil rights laws and our national values of fairness, justice and equality,” said EEOC chair Charlotte A. Burrows. “This new technical assistance document will aid employers and tech developers as they design and adopt new technologies.”

In addressing possible discrimination effects of AI, the EEOC stated that neutral tests or selection procedures, including algorithmic decision-making tools, that have a disparate impact on the basis of race, color, religion, sex or national origin must be job-related and consistent with business necessity; otherwise, they are prohibited.

Employers should examine uses of AI and evaluate procedures to make sure they are job-related and consistent with business necessity.

Steinberg Law specializes in various aspects of Labor and Employment law and is glad to share this new development on this new technology.  Feel free to contact us for any questions or assistance you may need.

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