As we’ve noted in prior PERKS posts, government agencies are paying particular attention to employers’ use of Artificial Intelligence (AI) these days and have indicated that it will be an enforcement priority moving forward. This week saw a major development on that front.
Late Wednesday, the Equal Employment Opportunity Commission (EEOC) reached a first of its kind settlement concerning the use of AI in employment decisions, in its action challenging English-language tutoring company iTutorGroup Inc. The EEOC had alleged that in 2020 iTutorGroup programmed online recruitment software to screen out women older than 55 and men older than 60.
Under the proposed settlement, the company agreed to pay $365,000 to more than 200 job applicants allegedly passed over because of their age. The settlement would also require the company to develop and submit for EEOC review, new anti-discrimination policies and procedures and an internal complaint mechanism, and to engage a third party to provide a four-hour training to all supervisory and management employees (as well as any employees or independent contractors who may be involved in screening, hiring, or supervising) within a certain time period and on an annual basis.
The proposed settlement still must be approved by the federal judge overseeing the case.