AI and employment practices – what employers need to note

    Authored by Bukaty Companies on July 14, 2023

    With the use of Artificial Intelligence (AI) growing in popularity, it is no surprise that its capabilities have begun to integrate into employment practices. While using AI to aid in hiring processes can ease some of the burdens HR professionals are tasked with, the Equal Employment Opportunity Commission (EEOC) warns of the potential adverse impact it can have.  

    In recent guidance issued by the EEOC, the agency cautions that employers are responsible for ensuring that algorithmic decision-making tools used in their employment practices do not violate Title VII by disproportionately having a negative impact on the basis of race, color, religion, sex, or national origin. Employers are held responsible for their use of such decision-making tools even if another entity designed it or administers it on their behalf.    

    Employers should monitor and assess the AI tools that are involved in their selection processes. One way to do this is with the four-fifths rule of thumb. The four-fifths rule is a guideline to determine if a selection rate for a group “substantially” varies compared to other groups, indicating there could be an adverse impact on a protected group. A selection rate is the proportion of candidates selected, hired, or promoted divided by the candidate pool in a group. For example, if the selection rate for male applicants is 24% and the selection rate for female applicants is 40%, the ratio of rates would be 24/40, or 60%. Since 60% is lower than four-fifths, or 80%, male applicants would be considered to have a substantially different selection rate versus females.  

    If employers finds that the algorithmic decision-making tool they employ skews toward discriminatory results, steps should be taken to reduce the impact or select a different tool that does not violate Title IV. Consider outsourcing your recruiting and retention efforts to put valuable time back on your calendar. Bukaty Companies’ HR experts can vet candidates, schedule interviews, assist in follow-up, and aid in onboarding.  




    Blog Category: Compliance