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Employer Paying Six Figure Settlement Based on EEOC Claims that AI Software Discriminated Against Older Applicants.

The Equal Opportunity Commission (EEOC) reached a $365,000 settlement with iTutorGroup, Inc. after the federal agency filed a complaint alleging that the company's AI software automatically rejected female tutor applicants over 55 and male tutor applicants over 60. This case is the first AI-related settlement known to the public, indicating the EEOC's commitment to prosecuting cases involving AI discrimination. Click here for article.

  • Settlement Details: The EEOC alleged that iTutorGroup's AI software automatically rejected applicants based on age, affecting over two hundred applicants. The settlement amount is $365,000.

  • Implications for Employers: This case underscores the importance for employers, including those in California, to understand how their AI software screens applicants. Employers should familiarize themselves with EEOC guidelines and technical assistance publications, such as "Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964."

  • Pending Legislation: Employers in California should monitor AB 331, pending in the California Assembly, which would regulate how employers use automated decision tools like AI and give the state authority to prosecute violations. Additionally, they should keep an eye on proposed regulations from the California Civil Rights Council regarding AI and automated decision-making systems.

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