Artificial Intelligence

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Key Point: The EEOC released guidance to employers on how to assess adverse impacts when using artificial intelligence (AI) in the employment decision-making process.

The Equal Employment Opportunity Commission (EEOC) recently issued a technical assistance document to help employers avoid discriminating against job applicants and employees when using AI for employment decisions. In the technical assistance, the EEOC highlights that employers may violate Title VII of the Civil Rights Act of 1964 (Title VII) if their algorithmic decision-making tools have an adverse impact on protected classes, even where those tools are designed or administered by third parties.

Keypoint: The AI Act is the first legislation of its kind and is expected to have a significant impact on companies globally.

The European Parliament recently voted in favor of the Artificial Intelligence Act (“AI Act”) with overwhelming majority. Once finalized, the AI Act will have widespread impact for entities using artificial intelligence (“AI”) in their business operations. Similar to the European Union’s (“EU”) General Data Protection Regulation, the AI Act will apply extraterritorially to providers placing on the market or putting into service AI systems in the EU, irrespective of whether those providers are established in the EU or in a third country.

The AI Act is dense and expansive. For entities looking for an introduction to the topic, below we provide a brief overview of the current legislation, as well as what you can expect procedurally as the AI Act progresses toward final passage.

Keypoint: New York City issued final regulations on the use of automated employment decision tools by employers, with enforcement to begin on July 5, 2023.

The New York City Department of Consumer and Worker Protection (DCWP) adopted its Final Rule to implement Local Law 144, which regulates the use of “automated employment decision tools” (AEDTs) to screen applicants or employees in the city. The DCWP also announced that it will begin enforcing the law on July 5, 2023.

Keypoint: After a January hearing, New York City continues to consider comments to a new law regulating employers’ use of automated employment decision tools, with enforcement to begin “in the coming months.”

New York City moves closer to implementing Local Law 144, the first major U.S. law governing the use of AI employment technologies. On January 23, 2023, the New York City Department of Consumer and Worker Protection (DCWP), the agency charged with enforcing the law, held a second public hearing on the law’s proposed rules to address several ambiguities related to key definitions and the scope of the law. Within the past week, the DCWP published a transcript of the hearing and announced that it would finalize its rules and begin enforcement “in the coming months.”

Keypoint: Employers who use automated employment decision tools in New York City will receive additional guidance on complying with Local Law 144 before enforcement begins on April 15, 2023.

New York City employers who use automated employment decision tools (“AEDTs”) now have until April 15, 2023, to prepare for compliance with New York City Local Law 144 which regulates usage of such tools. The law was to go into effect on January 1, 2023.

In the below post, we provide a brief overview of the law and its current rulemaking process.