Job Applicants Sue AI Screening Company for FCRA Violations: 5 Key Takeaways for Employers
A new class action lawsuit against an AI recruiting platform could have significant implications for employers using artificial intelligence to screen job candidates. Two job applicants filed suit against Eightfold AI in California state court on January 20, alleging that the company violated federal and state consumer protection laws by creating “hidden credit reports” on job seekers without complying with statutory requirements imposed on consumer reporting agencies, including obtaining proper certifications from employment-purposed end-users . While we’ve started to see a series of lawsuits across the country attacking AI hiring systems for alleged discrimination, this could be the first to take the position that an AI tool could lead to a FCRA violation. Here’s what employers need to know about this developing legal challenge and five key takeaways to help protect your organization. The Allegations: AI Screening Tools as “Consumer Reports” The lawsuit, filed by Erin Kistler and Sru...