What AI in Hiring Means for Employment Law

Artificial intelligence (AI) is becoming a powerful tool in the hiring process. Many companies now rely on AI to screen resumes, rank applicants, or even conduct initial interviews. These tools promise speed and efficiency, but they also raise legal concerns, mainly when they affect someone’s chance of getting a job.

In states where employment rights are taken seriously, candidates need to know how AI may impact them. If you believe you were mistreated during hiring, you may need legal support for workplace discrimination claims.

What is AI, and how is it used in Hiring?

AI refers to computer programs that can analyze data and make decisions with little or no human input. In hiring, AI is often used to:

• Automatically scan resumes for keywords
• Score candidates based on answers to screening questions
• Conduct video interviews using facial and voice analysis
• Rank applicants by predicted job performance

AI presents both opportunities and challenges. It can help companies save time and reduce costs, and in some cases, even lower human bias. However, it can also make mistakes, mainly when systems rely on data that reflects past biases.

According to a 2022 report by the Equal Employment Opportunity Commission (EEOC), over 83% of employers now use some type of AI or automation in hiring. While these tools are becoming more popular, their use must still comply with employment laws designed to protect job applicants.

Risks of AI in Hiring

While AI can streamline recruitment and potentially reduce bias, it also introduces new risks. One primary concern is algorithmic bias. AI systems learn from past data. If that data contains patterns of discrimination, such as favoring male over female candidates or specific ethnic groups, AI may repeat those patterns without human oversight.

These risks can lead to:

• Gender or racial bias in applicant screening
• Age discrimination, especially if older applicants are filtered out
• Disability discrimination, where nontraditional speaking patterns or gaps in employment history trigger a rejection

If an AI tool causes discrimination, the company using it can be held legally responsible, even if they didn’t build the software themselves.

Making AI Hiring Compliant with the Law

To stay compliant, companies must ensure their AI tools follow employment laws such as:

• Title VII of the Civil Rights Act – protects against discrimination based on race, color, religion, sex, or national origin
• The Americans with Disabilities Act (ADA) prohibits discrimination against individuals with disabilities
• The Age Discrimination in Employment Act (ADEA) – protects applicants over age 40

Employers should:

• Be transparent with candidates about the use of AI in hiring
• Test and audit AI tools regularly to uncover hidden bias
• Offer an alternative method for applicants who request it
• Work with legal teams to ensure AI practices align with anti-discrimination laws

Some regions have already passed laws on AI hiring. For example, New York City now requires companies to conduct bias audits and notify applicants when AI is used. Similar rules may soon be introduced in other states, including California.

Final Thought

AI is transforming the way companies hire, offering benefits such as speed and consistency. However, if not used carefully, it can lead to unfair treatment and even violate employment laws. That’s why both job seekers and employers must stay informed about how these tools work and how they are regulated.

If you believe an AI system was used unfairly during your hiring process, don’t hesitate to seek legal support. With the right help, you can ensure that technology doesn’t stand in the way of your opportunity.