Compliance Stuff

It started as merely trying out artificial intelligence (AI) tools. Now, more and more employers (and their employees) are relying on AI for their everyday operations, including drafting emails and summaries, screening and ranking applicants, managing employee performance, and answering routine questions. This expanded role has changed AI from a casual acquaintance into a new “co-worker” that can influence employment decisions, outcomes, and experiences. Employers are reviewing AI tools, assessing risks and deciding which tools are authorized in their workplace and for what purpose. Courts and regulators are also reviewing AI tools more closely, focusing on discrimination, transparency, monitoring, and protection of confidential information. AI Is No Longer Just a Tool – It’s a ‘Co-Worker’ As AI becomes embedded in workflows, its role can be difficult for employees to distinguish from the input or output of employees. For example, an employer might not know that some resumes never rea...

As businesses integrate AI tools into operations, a spike in related litigation is no surprise, especially due to the lack of formal legal precedent. Last month, a federal court in the Northern District of California provided some much-needed guidance when it granted a motion to preliminarily certify a collective in a lawsuit alleging that an AI-based applicant screening system discriminated against individuals aged 40 and older. In  Mobley v. Workday, Inc. ,  the plaintiffs claimed they received hundreds of rejections without interviews after applying for jobs through Workday—a provider of human resource management software, including platforms connecting employers with job applicants. According to the plaintiffs, Workday’s AI-driven applicant f iltering algorithm disproportionately disqualified individuals over 40 from employment opportunities. Plaintiffs sought preliminary certification of a nationwide collective under the Age Discrimination in Employment Act (ADEA), propo...