The EEOC recently filed a $365,000 Joint Settlement Agreement with a tutoring company based on claims that the company used hiring software that automatically rejected applicants based on their age. While the EEOC has repeatedly issued guidance regarding the use of artificial intelligence (“AI”) in the hiring process and made it clear that eradicating discrimination stemming from it is a priority, this is the first EEOC settlement actually involving AI software bias.
For employers who utilize AI software in their hiring processes, this settlement highlights the potential risks of legal and monetary exposure when AI software generates hiring decisions that disparately impact applicants from protected classes.
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