EEOC AI Discrimination Prevention

June 20, 2023 HoganTaylor

The EEOC (Equal Employment Opportunity Commission) has issued guidance to help employers prevent discrimination in AI-driven hiring and employee management processes. The concern raised by the EEOC and DOJ (U.S. Department of Justice) is that the use of AI in these processes can result in violations of the Americans with Disabilities Act (ADA) and Title VII of the Civil Rights Act.

The EEOC's previous guidance in May 2022 highlighted three ways in which AI tools could lead to ADA violations: failure to provide accommodations, rejecting applicants with disabilities, and implementing AI solutions in violation of the ADA. The DOJ issued similar guidance on the issue of disability discrimination in hiring.

The latest EEOC guidance focuses on preventing "disparate impact" under Title VII, which occurs when neutral tests or selection procedures disproportionately exclude individuals based on protected characteristics such as race, color, religion, sex, or national origin. The guidance provides recommended steps for employers to audit AI and other automated solutions to identify and avoid disparate impact.

The EEOC's guidance defines key terms related to automated systems and AI, and it addresses common questions about algorithmic decision-making tools and selection rates. Importantly, the guidance states that employers can be held responsible for algorithmic decision-making tools even if those tools are designed and administered by a vendor.

If your organization uses AI in hiring and performance management, it is important to stay informed about the concerns and regulatory guidance surrounding AI technology. The full text of the EEOC guidance can be found on their website.

HoganTaylor Human Capital Strategies Services

If you have any questions about this content, or if you would like more information about HoganTaylor’s Advisory practice, please contact Jeff Wilkie, Principal and lead of the HoganTaylor Human Capital Strategies (HCS) practice. More information is also available on the Human Capital Strategies page of this website.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.

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