EEOC Enforcement of AI is Ramping Up

EEOC Enforcement of AI is Ramping Up: What Employers Need to Know

Artificial Intelligence (AI) is becoming increasingly prevalent in hiring practices, offering efficiency and potential for bias-free decision-making. However, recent developments highlight the need for caution and vigilance to ensure compliance with anti-discrimination laws. The Equal Employment Opportunity Commission (EEOC) has intensified its focus on AI-related employment discrimination, as evidenced by a significant settlement involving age bias.

The Case in Brief

A tutoring company, which marketed language services primarily to Chinese individuals, faced allegations from the EEOC over its use of AI in hiring. The company's AI system was designed to streamline the recruitment process but, according to the EEOC, it filtered out applicants based on age. The system reportedly required applicants to provide their dates of birth and automatically excluded male applicants over the age of 50 and female applicants over the age of 45.

This practice was in direct violation of the Age Discrimination in Employment Act (ADEA), which prohibits discrimination against individuals aged 40 and older in hiring and employment practices. The issue came to light when applicants, having initially been rejected, resubmitted identical applications with altered birth dates, which resulted in job offers. This revelation led to a $365,000 settlement by the tutoring company.

Implications for Employers

The EEOC’s action against the tutoring company serves as a critical reminder for employers to ensure that AI systems do not inadvertently or intentionally discriminate against protected classes. Here are some key takeaways for employers:

1. Audit Your AI Systems: Regularly review and audit AI and machine learning algorithms used in hiring to ensure they comply with anti-discrimination laws. It is essential to understand how these systems make decisions and to ensure they do not factor in protected characteristics like age.
2. Policy Revisions: Employers should revise hiring policies and practices to prevent discriminatory outcomes. This includes eliminating any requirement for unnecessary personal information, such as dates of birth, during the application process.
3. Training and Awareness: Provide training for HR personnel and anyone involved in the hiring process on the potential biases associated with AI systems. Awareness of these issues is the first step in mitigating risks.
4. Transparency and Accountability: Be transparent with applicants about how their data will be used and ensure that there is accountability for the outcomes of AI-driven decisions. Establish a protocol for applicants to report suspected discrimination and for employers to investigate these claims promptly.

Looking Ahead

As AI technology continues to evolve, so too will its regulation. The EEOC's enforcement actions signal a growing focus on the potential discriminatory impact of AI in employment. Employers who embrace these technologies must do so with an understanding of their legal obligations and a commitment to fair and equitable hiring practices.

By proactively addressing these issues, employers can harness the benefits of AI while minimizing risks and ensuring compliance with the ADEA and other anti-discrimination laws.

✴️Join us for our upcoming AI Compliance webinar in September-click here! 

✴️Need help keeping your organization compliant? Contact us!