Hiring Bias and Privacy Issues: Artificial Intelligence and Employer Considerations

On October 18, Leech Tishman’s Employment & Labor attorneys examined the current legal landscape regarding the use of AI in the workplace.

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The use of Artificial Intelligence is appealing to companies because it is marketed as being efficient, cost-effective, and potentially free of human biases. According to a survey from the Society of Professionals in Human Resources, about 80% of employers nationwide use some form of AI for recruiting or hiring workers (as of February 2022). Recent lawsuits and legal challenges, however, have illustrated that using AI is not free from risk. Employers should carefully consider the benefits and potential consequences before implementing Artificial Intelligence tools in their hiring, recruiting, and retention practices.

In this 1-hour presentation, our attorneys outlined the challenges that companies face, and also addressed the potential ramifications of recent decisions, including:

• The enforcement of New York’s Local Law 144 of 2021 beginning July 5, 2023. The law prohibits employers and employment agencies from using “automated employment decision tool” (or “AEDTs”) unless the company meets certain compliance standards.
• January 10, 2023 publication of the EEOC Draft Strategic Enforcement Plan, which specified a focus on discriminatory recruitment and hiring practices
• August 9, 2023 EEOC’s settlement of its first-ever lawsuit alleging AI discrimination in hiring
• An analysis of federal and state laws regarding AI in the workplace
• Privacy concerns regarding data collected during the hiring process