Topics: AI in the Workplace, Employee Hiring, Discipline & Termination, Personnel Policies and Procedures
The integration of Artificial Intelligence (AI) into employment decision-making has revolutionized how companies recruit, evaluate, and manage employees. These high-functioning AI tools are capable of screening job applications, assessing job performance, and even recommending discipline or termination, which can save businesses considerable time and money. But while AI may seem like an impartial decision-maker, it is not immune to bias, and when automated decision systems (ADS) go unchecked, the legal consequences can be severe.
Government Enforcement and Private Litigation
Recent litigation in state and federal courts and enforcement efforts by the Equal Employment Opportunity Commission (“EEOC”) and California Civil Rights Division (“CRD”) underscore the potential shortcomings of AI in the workplace.
In 2023, the EEOC settled a complaint for $365,000 against a company using ADS. The Agency claimed that the Company’s AI software had a disparate impact on certain applicants, rejecting the applications of women over 55 and men over 60. Read more about the case in CDF’s Blog Article addressing the topic.
More recently, a lawsuit in federal district court alleging similar claims was filed against Workday, Inc. The plaintiff, Derek Mobley, alleges that Workday’s AI hiring tool discriminated against applicants aged 40 and over. In a major development, the judge...
Some of the world’s largest food manufacturers, including Nestlé and Unilever, are flooding the market with expensive dietary supplements that promise solutions to stress, obesity, and menopausal ...