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US EEOC - Artificial Intelligence and Employment Decision-Making: Title VII Adverse Impact Guidance (2023)

The US Equal Employment Opportunity Commission (EEOC) published 'Select Issues: Assessing Adverse Impact in Software, Algorithms, and Artificial…

What US EEOC - Artificial Intelligence and Employment Decision-Making: Title VII Adverse Impact Guidance (2023) requires

The US Equal Employment Opportunity Commission (EEOC) published 'Select Issues: Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures' in May 2023, providing technical assistance on how Title VII of the Civil Rights Act of 1964 applies to AI-enabled employment selection tools; key EEOC positions: (1) employer liability - an employer who uses an AI employment selection tool is responsible for Title VII compliance even if the tool was developed by a third-party vendor; if the tool has a disparate impact on a protected group (race, color, religion, sex, national origin), the employer cannot shift liability to the software developer; (2) disparate impact test - AI tools must be assessed for whether they create disparate impact (disproportionate exclusion of a protected class) using the four-fifths (80%) rule or statistical significance tests; (3) job-relatedness and business necessity - if disparate impact is shown, the employer must demonstrate that the tool is job-related and consistent with business necessity (the EEOC's Uniform Guidelines on Employee Selection Procedures 1978 apply); (4) less discriminatory alternatives - even where business necessity is shown, plaintiffs can challenge an AI selection tool if a less discriminatory alternative exists; (5) contractor liability - federal contractors using AI employment tools are also subject to Executive Order 11246 affirmative action obligations; the EEOC's 2023 AI guidance applies to all phases of employment: recruitment, hiring, promotion, pay, performance evaluation, and termination - not just initial hiring; this guidance supplements (but does not replace) the EEOC's 2022 guidance on AI and the Americans with Disabilities Act (ADA).

Pillar: AI Governance & Law · Authority: US Equal Employment Opportunity Commission (EEOC) · Version: 1.0.0 · Last updated:

Primary source: https://www.eeoc.gov

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