The U.S. Equal Employment Opportunity Commission (EEOC) has provided clarifications regarding the reliance of employers on assurances from vendors regarding the compliance of their AI tools with Title VII of the Civil Rights Act of 1964. The EEOC emphasized that if the usage of such tools leads to adverse discriminatory impacts, the employer may be held legally responsible. On May 18, the EEOC issued new technical assistance guidance that elaborated on the application of Title VII to automated systems incorporating artificial intelligence in various human resources (HR) functions.
The EEOC highlighted that employers must exercise caution when using AI to select new employees, monitor performance, and make decisions related to compensation or promotions. Without appropriate safeguards, employers run the risk of violating Title VII. The EEOC regarded this guidance as a "wake-up call" for employers, stressing the importance of recognizing that long-standing non-discrimination laws apply even in the emerging realm of AI-driven employment selection tools.
The EEOC further explained that neutral tests or selection procedures, including algorithmic decision-making tools, that result in a disproportionate impact based on race, color, religion, sex, or national origin must be job-related and consistent with business necessity. Failure to meet these requirements renders such procedures prohibited. Even if the procedures satisfy job-relatedness and business necessity criteria, employers must explore alternative options. The EEOC emphasized that the focus of the technical assistance was on disparate impact analysis.
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