EEOC AI Guidance (Title VII & ADA)
The EEOC has issued technical assistance documents clarifying that employers are responsible for ensuring AI hiring tools comply with Title VII and the ADA, even when the tools are developed by third-party vendors.
Penalties for Non-Compliance
- Standard Title VII remedies: compensatory and punitive damages
- Back pay and front pay awards
- Injunctive relief requiring changes to hiring practices
- Attorney fee awards
- Damages capped at $300,000 for largest employers
- No cap on back pay awards
Key Requirements
Employers are liable for disparate impact of AI hiring tools regardless of vendor
AI tools must be validated for job-relatedness and business necessity
Reasonable accommodations must be provided for AI-driven assessments
Employers must monitor AI tools for adverse impact across protected groups
Selection procedures must comply with the Uniform Guidelines
Four-fifths rule applies to AI-driven selection rates
Step-by-Step Compliance Checklist
Audit all AI hiring tools for adverse impact using the four-fifths rule
Validate AI tools for job-relatedness and business necessity
Implement reasonable accommodation processes for AI assessments
Review vendor contracts for compliance obligations
Monitor selection rates across race, sex, age, and disability status
Document business justification for any tools showing adverse impact
Train HR staff on EEOC AI guidance
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