More and more companies are using AI to evaluate job applications and make interview and hiring decisions. However, government contractors that use artificial intelligence to evaluate job applications must ensure that the AI not only complies with anti-discrimination laws, but also fulfills their contractual responsibilities. Federal contractors with contracts valued at $10,000 or more are subject to Executive Order 11246 and are subject to Executive Order 11246, which prohibits job applicants from hiring candidates based on race, color, sex, sexual orientation, gender identity, religion, or national origin during the performance of a contract. It is prohibited to discriminate against employees. This means that government contractors accused of employment discrimination need to worry about adverse contract actions and other potential legal consequences.
Additionally, the federal government has made clear that the use of AI may violate anti-discrimination laws. In April 2023, the Consumer Financial Protection Bureau, the Department of Justice's Civil Rights Division, the EEOC, and the FTC released the Joint Statement on Enforcement Efforts Against Discrimination and Bias in Automated Systems. “Automated systems may contribute to unlawful discrimination and may otherwise violate federal law,” the joint statement explains in literal bold letters. The agency “promises”[d] use actively [their] Regardless of whether legal violations occur through traditional means or advanced technology, authorities must collectively protect the rights of individuals. ”
Shortly after issuing this statement, the EEOC made it clear that it meant business. In August 2023, three full-service English tutoring companies named iTutorGroup paid $365,000 in settlement of an EEOC lawsuit alleging they used AI to discriminate against older job applicants. . EEOC Commissioner Charlotte A. Burroughs wrote about the lawsuit: “Age discrimination is unjust and illegal. Even if technology automates discrimination, employers still have a responsibility.”
To prevent employment discrimination arising from AI bias, government contractors must practice rigorous AI governance, or the ability to direct, control, and monitor an organization's AI activities. AI governance is too complex to fully explain here, but in short, government contractors (and other employers) may want to, among other things: .
- Establish written policies and procedures for the use of AI.
- Closely monitor AI to ensure it is operating within legal and contractual limits.
- Designate an individual or team responsible for protecting against AI bias.
This article was written by Sean Griffin.
