Jul 26, 2023
The Equal Employment Opportunity Commission released guidance in mid-May emphasizing that when it comes to race, color, religion, sex, or national origin, employers are responsible for the decisions their software, algorithms and artificial intelligence make.
This is not about new law. Rather, it's about how new processes are still bound by current laws and regulations. The EEOC makes specific reference to the Uniform Guidelines on Employee Selection Procedures under Title VII. Basically, there's no shortcut around the rules. "For example," writes the EEOC, "if an employer administers a selection procedure, it may be responsible under Title VII if the procedure discriminates on a basis prohibited by Title VII, even if the test was developed by an outside vendor. In addition, employers may be held responsible for the actions of their agents, which may include entities such as software vendors, if the employer has given them authority to act on the employer's behalf."
What should employers do?
Advice of the EEOC: At the very least, employers should ask vendors "whether use of the tool causes a substantially lower selection rate for individuals with a characteristic protected by Title VII." In the guidance, the EEOC goes into specifics about what kinds of questions employers should ask of vendors or any firm recruiting on their behalf using algorithmic methods.
In a news alert, the Society for Human Resource Management wrote that "without proper safeguards, employers might violate Title VII when they use AI to select new employees, monitor performance and determine pay or promotions." It warned that "employers will be held responsible for any of these violations, even if the AI tool is administered by a third party, such as a vendor paid by the employer to deliver the service."
This is not the last word on the subject — just one of the first! More guidance and interpretations are likely to come in future weeks and months. For now, the takeaway is that well-established rules apply no matter which people — or machines — do the hiring and HR management. Meanwhile, the new guidance is available on the EEOC website.
©2023
Jul 03, 2025
When you provide workers with additional benefits on top of their regular pay, some may be taxable. As the rules can get complicated, it pays to familiarize yourself with the requirements. Read through for an overview of which benefits are taxable.
Jul 02, 2025
Disputes over unpaid work time often arise from tasks performed outside official hours — for example, answering emails, traveling between jobsites or changing into work clothes. Employers must understand when these activities count as compensable work. Read through to learn how exempt and nonexempt statuses affect wage obligations.
Jul 01, 2025
Workers' comp insurance is essential for most businesses, but as an employer, you may have more options than you realize. Read through for an introduction to the pay-as-you-go model and the advantages of outsourcing it.
Jun 30, 2025
Employers must ensure that break policies comply with wage laws, especially when employees work through lunch, answer emails after hours or remain on call. Similarly, misclassifying paid and unpaid breaks can lead to wage violations and legal risks. Read through for key guidelines on tracking break time and maintaining compliance.
Jun 04, 2025
Have you heard of key person insurance? This is a type of life insurance policy that may positively benefit your business’s continuity, though it has both tax and financial implications. Read through to see whether key person insurance is right for your company.
Jun 03, 2025
Do you have questions about the tax treatment of payments for part-time and seasonal help? These employees are subject to the same rules that apply to all employees — with some twists. Read through for some help on tax rules regarding part-time and seasonal help.
More News & Press can be found in our Archive.
