The EEOC issued a new Guidance today as part of its ongoing effort to educate about the application of EEO (anti-discrimination) laws to the use of software and automated systems in employment decisions.
As the Guidance states, “if use of an algorithmic decision-making tool has an adverse impact on individuals of a particular race, color, religion, sex, or national origin, or on individuals with a particular combination of such characteristics . . . then use of the tool will violate Title VII unless the employer can show that such use is ‘job related and consistent with business necessity’ pursuant to Title VII” (likely even where employers “rely on a software vendor to develop or administer an algorithmic decision-making tool.”).