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...

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...