On August 9, the U.S. Equal Employment Opportunity Commission (“EEOC”) and iTutorGroup, Inc. filed a joint notice of settlement and consent decree announcing the settlement of a discrimination in hiring lawsuit. This settlement marks the first instance in which the EEOC settled a lawsuit alleging unlawful discrimination stemming from the use of Artificial Intelligence (“AI”) in recruiting software.

The lawsuit was centered around allegations that iTutorGroup programmed its recruiting software to automatically reject applicants over a specific age. In the settlement, iTutorGroup has agreed to pay $365,000.

AI tools are gaining traction in various employment-related areas, including recruitment and hiring. However, in the United States this swiftly evolving technology remains largely unregulated, creating a complex landscape and ambiguities for employers attempting to comply with existing legal standards. Our previous reporting has addressed some of the preliminary measures being taken by the EEOC and other federal, state, and local entities to address this regulatory gap and provide guidance for employers navigating this complex new terrain.

The lawsuit against and settlement with iTutorGroup is likely the first of many and underscores the necessity for clear guidance surrounding the use of AI and the importance of understanding the legal ramifications of reliance on automated decision-making processes. This case serves as a pertinent reminder of the legal obligations employers bear and the vigilance required in ensuring that innovative tools like AI are used in compliance with existing laws.

We will continue to follow this and related developments, providing updates and analysis as new information becomes available.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Dixie Morrison Dixie Morrison

Dixie Morrison is an associate in the Labor & Employment Department and a member of the Employment Litigation & Arbitration Group. She is a member of the Discrimination, Harassment, & Title VII and the Labor-Management Relations practice groups.

Dixie assists clients across a…

Dixie Morrison is an associate in the Labor & Employment Department and a member of the Employment Litigation & Arbitration Group. She is a member of the Discrimination, Harassment, & Title VII and the Labor-Management Relations practice groups.

Dixie assists clients across a variety of industries in litigation and arbitration relating to wrongful termination, discrimination, harassment, retaliation, wage and hour, trade secrets, breach of contract, and whistleblower matters in both the single-plaintiff and class and collective action contexts. She also maintains an active traditional labor and collective bargaining practice and regularly counsels employers on a diverse range of workplace issues.

Dixie earned her J.D. from Harvard Law School, where she was the Executive Editor of Submissions for the Journal of Sports and Entertainment Law. Dixie received her B.A., magna cum laude, from Pomona College. Prior to law school, she served as a labor and economic policy aide in the United States Senate.