The Equal Employment Opportunity Commission (EEOC) has today settled a lawsuit with iTutorGroup for $365,000 over AI-driven age discrimination, marking the first settlement against AI-powered recruitment tools in the US.
It was announced in May 2022 that the EEOC was suing the iTutorGroup for their use of an algorithm in 2020 that automatically rejected older applicants due to their age, with women over 55 and males over 60 being disqualified from consideration.
Since this violates the Age Discrimination Act, where those aged 40 and over are protected against discrimination, legal action was brought against the company in U.S. District Court for the Eastern District of New York after pre-litigation settlement attempts through the EEOC’s conciliation process were unsuccessful.
Having previously announced that a settlement conference would be held in October 2023, the EEOC has now settled the case for $365,000, according to a joint notice of settlement filed on 9 August 2023. Significantly, this is the first lawsuit to be settled against AI-driven recruitment tools in the US.
Under the associated consent decree, the iTutorGroup will be prohibited from automatically rejecting tutors over 40 or anyone based on their sex. The Group will also be expected to comply with all relevant non-discrimination laws and cooperate with the EEOC to adopt the appropriate policies and practices to prevent unlawful discrimination in the future.
This lawsuit is likely to be the first of many involving HR Tech tools, particularly with the wave of regulations targeting automated employment decision tools across the US. It is more important than ever to ensure that these tools are used in a safe and fair way that complies with current and proposed laws.
To find out how Holistic AI can help your organisation shield itself from the legal and financial penalties associated with falling foul of legislation aimed at reducing the adverse impacts of AI systems, schedule a call with our expert governance, risk, and compliance team.
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