Compliance Stuff

A company selling artificial intelligence (AI)-powered applicant assessment tools has been hit with a lawsuit that may be the first of its kind to claim that such tools violate the federal Fair Credit Reporting Act (FCRA) and its California equivalent, the Investigative Consumer Reporting Agencies Act (ICRAA). This case could be the tip of the iceberg for lawsuits based on AI-powered tools that employers are increasingly using to make hiring and other employment decisions. Quick Hits A proposed class action alleges that a widely-used AI-powered tool violates the federal FCRA and California’s ICRAA by compiling sensitive, individualized personal information on job applicants without their consent.  The complaint contends that by evaluating applicants based on extensive data sources—such as LinkedIn profiles, publications, and job application history—the tool generates consumer reports subject to the disclosure, authorization, notification, and certification requirements of both stat...

As we anticipated, the Trump administration rescinded Biden-era guidance yesterday on transgender rights in the workplace. In a 2-1 vote, the Equal Employment Opportunity Commission (EEOC) scrapped enforcement guidance requiring employers to provide bathroom, dress, and pronoun accommodations to applicants and workers. While Democratic Commissioner Kalpana Kotagal cautioned that the rule could only be lawfully rescinded through a formal notice-and-comment process, Republican Chair Andrea Lucas said the rule went beyond the EEOC’s authority to enforce the civil rights law at issue. Notably, a federal judge already struck down relevant parts of the guidance in May 2025, and the Trump administration has long pledged to remove gender ideology from agency materials. Although not much has changed from a practical perspective for employers, you should be aware of changing priorities at the federal level – and ensure you’re still complying with federal, state, and local anti-discrimination la...

Genetic information may not be the first thing that comes to mind when employers think about workplace discrimination.   However, federal law provides protections for employees based on their genetic information and that of their family members.  In this third of a series of blogs [1]  examining overlooked or misunderstood provisions of employment laws, we are discussing four things employers may not know about the Genetic Information Nondiscrimination Act of 2008, commonly referred to as GINA. Under GINA, which applies to employers with 15 or more employees, it is unlawful to discriminate against applicants or employees based on “genetic information” or to rely upon such information in making employment decisions.   Employers are also restricted from requesting, requiring, acquiring or disclosing genetic information, with only a few narrow exceptions.  Like many other federal antidiscrimination laws, GINA is enforced by the U.S. Equal Employment Opportunity Com...

  Washington employers will soon get some relief from the state’s strict job posting requirements after lawmakers unanimously passed a law to mitigate some of the more onerous parts of the key state statute. Starting July 27, state law will provide a grace period to correct violations , limit the amount of damages that applicants and workers can receive if violations are found, and offer additional flexibility to comply with the law. What do you need to know about the new law signed into effect today, and what seven things should Washington employers do as a result of this fortunate development? 2023 Job Posting Rules Carry Steep Risk Since January 1, 2023, Washington’s Equal Pay and Opportunity Act (EPOA) has required that employers ensure their job postings include the “wage scale or salary range and general description of benefits and other compensation” to promote pay transparency as one way to combat pay inequity. These rules – and their consequences – are arguably the stric...