Utilizing AI in the Workplace: DOL's New Guidelines for Compliance and Worker Protection

As artificial intelligence (AI) continues to weave its way into various workplaces, the U.S. Department of Labor (DOL) is actively addressing the technology’s extensive implications. Recently, the DOL released two crucial sets of guidance aimed at helping employers navigate AI’s complexities.

DOL’s Stance on Legal Compliance and Worker Protection

On April 29, 2024, DOL Administrator Jessica Looman issued Field Assistance Bulletin No. 2024-1 to the Wage and Hour Division staff. This bulletin outlines how existing federal labor laws apply to the use of AI by employers. Looman highlighted that “without responsible human oversight, the use of AI technologies may pose significant compliance challenges with federal labor standards.”

Focus on Key Legislation

The bulletin particularly emphasizes the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA):

• FLSA Compliance: Employers are cautioned against docking pay based on AI-calculated productivity metrics. Additionally, AI systems must not be used to take adverse actions against employees involved in protected activities, such as filing complaints with the DOL.
• FMLA Considerations: Employers must be vigilant to prevent AI systems from:
  • Wrongfully denying qualified leave.
  • Miscalculating earned paid time off.
  • Requesting excessive information from leave applicants.

Looman stressed that systems tracking leave usage should not target FMLA leave users for retaliation or discourage their use.

Coverage of Additional Acts

The guidance also addresses the Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act) and the Employee Polygraph Protection Act. For a detailed read, click here.

Eight Key Principles for AI in the Workplace

On May 23, the DOL published “Artificial Intelligence and Worker Well-being: Principles for Developers and Employers.” This document, informed by contributions from workers, unions, researchers, academics, employers, and developers, outlines eight essential principles for AI development and deployment in workplaces. These principles advocate that AI should be:

1. Worker-Centered: Engaging employees in the development, training, and use of AI.
2. Ethically Developed: Ensuring AI protects workers.
3. Governed with Human Oversight: Establishing clear governance and oversight mechanisms.
4. Transparent: Clearly communicating AI use to job applicants and employees.
5. Legally Compliant: Adhering to laws regarding workers’ rights to organize and other protections.
6. Job-Enhancing: Using AI to improve job quality.
7. Supportive: Providing adequate support and upskilling when introducing AI.
8. Data-Sensitive: Managing the responsible use of employees’ sensitive data.

The DOL notes that these principles are intended to be universally applicable, though their relevance may vary across different industries and workplaces. For the full text, click here.

What’s Next for Employers?

These guidelines stem from an executive order issued by President Biden in October 2023, emphasizing the “safe, secure, and trustworthy” use of AI. As AI’s impact on various sectors continues to evolve, employers can anticipate additional guidance at both federal and state levels. If you need help assessing the costs and ROI of AI or any other technology, we’re here to assist your organization.

HoganTaylor Talent Services

If you have any questions about this content, or if you would like more information please contact Jeff Wilkie, Principal of the HoganTaylor Talent practice. More information is also available on the HoganTaylor Talent 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.