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ARTICLE · 06 NOVEMBER 2023

Equal Employment Opportunity Commission's Settlement Challenging Simple Algorithm Provides Warning For Employers Using Artificial Intelligence

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The U.S. Equal Employment Opportunity Commission (EEOC) reached a settlement agreement in a lawsuit that many are calling the EEOC's "first ever" artificial intelligence...

United StatesEmployment and HR
Rachel V. See
Rachel V. See
Annette Tyman
Annette Tyman
Joseph R. Vele
Joseph R. Vele
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The U.S. Equal Employment Opportunity Commission (EEOC) reached a settlement agreement in a lawsuit that many are calling the EEOC's “first ever” artificial intelligence (AI) discrimination in hiring lawsuit.

The settlement serves as a strong reminder of the EEOC's ongoing emphasis on AI and algorithmic bias, and a reminder to employers that the results of any technology-assisted screening process should comply with existing civil rights laws.

This article discusses key takeaways from this settlement for all employers, regardless of whether their hiring technology might be characterized as an “artificial intelligence” tool.

The EEOC's Lawsuit

The EEOC's lawsuit, against iTutor Group and its related companies (iTutor), involved an employer that hired thousands of tutors in the United States each year to provide online tutoring from their homes or other remote locations. Under the parties' negotiated consent decree approved by the court on September 8, 2023,

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