EEOC Issues New Guidance on Employer Use of AI and Disparate Impact Potential

On May 18, 2023, the U.S. Equal Employment Opportunity Commission (EEOC) issued the latest federal guidance on employer use of artificial intelligence (AI) and automated decision-making tools. The new guidance reinforces the EEOC’s ongoing focus on the use of AI in the workplace and serves as an important reminder to employers of potential legal compliance issues associated with the use of such tools.

EEOC Issues Joint Statement on Automated Systems and AI Concerns With Other Agencies

On April 25, 2023, the U.S. Equal Employment Opportunity Commission (EEOC), Department of Justice (DOJ) Civil Rights Division, Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC) issued a joint statement pledging to enforce federal laws to “promote responsible innovation” in the context of automated decision-making and artificial intelligence (AI) systems that are increasingly being used by public and private organizations, including to make employment-related decisions.

NLRB Focuses on When Video Cameras Can Create an ‘Unlawful Impression of Surveillance’

In a decision relevant for employers utilizing video surveillance equipment in the workplace and those considering the installation of video cameras, the National Labor Relations Board concluded that an employer created an “unlawful impression of surveillance” by viewing camera footage of an employee, even though the employee was not engaged in protected concerted activity.

Chatbots Can Raise Unique Labor and Employment Law Risks

The launch of ChatGPT on November 30, 2022, ushered in an explosion of interest by businesses seeking to incorporate large language model artificial intelligence applications into the workplace. To capitalize on efficiencies that this technology presents, many employers have implemented or are considering the use of chatbots to serve human resource functions.

New York City Adopts Final Rules on Automated Decision-making Tools, AI in Hiring

On April 6, 2023, the New York City Department of Consumer and Worker Protection (DCWP) adopted highly anticipated final rules implementing the city’s law regulating the use of automated employment decision tools (AEDT) tools in hiring that will take effect on July 5, 2023. The AEDT law, which took effect on January 1, 2023, restricts the use of automated employment decision tools and artificial intelligence (AI) by employers and employment agencies by requiring that such tools be subjected to bias audits and requiring employers and employment agencies to notify employees and job candidates that such tools are being used to evaluate them.

Illinois Federal Judge Finds Another Eyewear Virtual Try-on Class Action Is Exempt Under BIPA’s Healthcare Exemption

A federal judge in Illinois recently ruled that online shoppers cannot sustain claims that a virtual try-on (VTO) tool that allegedly scans facial geometry to preview the look of sunglasses on their face violates the Biometric Information Privacy Act (BIPA or Privacy Act) because it falls into an exemption for “information captured from a patient in a health care setting.”

Illinois Supreme Court Rules Privacy Act Claims Accrue With Each Biometric Scan

On February 17, 2023, the Supreme Court of Illinois held claims under the Illinois Biometric Information Privacy Act (Privacy Act or BIPA) accrue on each and every scan or collection and further allowed so-called per scan damages. The ruling could open employers up to colossal and potentially devastating damages if the legislature does not amend the Privacy Act.

Illinois Supreme Court Rules Privacy Act Claims Have Five Year Statute of Limitations

On February 2, 2023, the Supreme Court of the State of Illinois ruled that all claims under Section 15 of the state’s Biometric Information Privacy Act (Privacy Act or BIPA) have a five year statute of limitations. The decision partially overturns an appellate court ruling that had found claims under subsections 15(c) and 15(d) of the Privacy Act were governed by a one-year limitations period under Illinois law for defamation and privacy claims.

EEOC Hears Testimony Concerning Employment Discrimination in Artificial Intelligence and Automated Systems

On January 31, 2023, the U.S. Equal Employment Opportunity Commission (EEOC) held a public hearing, titled, “Navigating Employment Discrimination in AI and Automated Systems: A New Civil Rights Frontier,” to receive panelist testimony concerning the use of automated systems, including artificial intelligence, by employers in employment decisions.

New York City Updates Proposed Rules for Automated Employment Decision Tools: What’s New and What’s Next

On December 23, 2022, the New York City Department of Consumer and Worker Protection (DCWP) published updated proposed rules to implement the city’s automated employment decision tools (AEDT) law (Local Law 144). The law conditions the use of automated employment decision tools to screen candidates for employment or employees for promotion within the city on compliance with certain requirements, including the performance of a bias audit, and the furnishing of notifications to candidates and employees.

New York City Postpones Enforcement of Automated Employment Decision Tools Law, Will Hold Second Public Hearing

With the January 1, 2023, effective date of New York City’s automated employment decision tools law looming, the city’s Department of Consumer and Worker Protection announced on December 12, 2022, that it intended to convene a second public hearing and postpone enforcement of the law until April 15, 2023.

DashCam Developer Insulated From BIPA Liability

On November 3, 2022, an Illinois circuit court judge dismissed a Biometric Information Privacy Act (Privacy Act or BIPA) putative class action against Samsara, Inc., a DashCam developer. DashCam is a safety technology for trucking companies such as Samsara’s customer and co-defendant, Beelman Truck Co. The DashCam device points an internet-connected dashboard camera at the driver to detect risky driving behaviors.

White House Unveils Blueprint to Guide Use of AI, Automated Systems Technology

The White House, on October 4, 2022, unveiled its “ Blueprint for an AI Bill of Rights ,” outlining non-binding recommendations for the design, use, and deployment of artificial intelligence (AI) and automated systems when such tools are used in ways that affect individual’s rights, opportunities, or access to critical resources or services.

‘Work From the Ballpark’—Is the Latest Remote Work Promotion a Foul Ball?

Some professional baseball teams are beginning to promote “Work From the Ballpark” days, encouraging fans to bring their laptops to a weekday afternoon game and work remotely from their seats. Under such promotions, fans can purchase tickets for a special section of the ballpark with access to WiFi, tables, and food so that they could stay logged on at work while enjoying the sights and sounds of the game. Employers are likely accustomed to dealing with employees who play hooky to attend an afternoon baseball game. But with the rise of remote work—and promotions such as these—should employers be concerned with employees logging into work from the ballpark?

New York City’s Automated Employment Decision Tools Law: Proposed Rules Are Finally Here

On September 23, 2022, the New York City Department of Consumer and Worker Protection published proposed rules to implement the city’s automated employment decision tools (AEDT) law. The law, which will take effect on January 1, 2023, conditions the use of automated employment decision tools by employers and employment agencies on their compliance with certain requirements, including the performance of bias audits and the furnishing of notifications to candidates and employees. The proposed rules define several key terms, identify the requirements for a bias audit, address obligations for publishing the results of a bias audit, and specify the notices to be furnished to employees and candidates for employment.

New York City to Convene Hearing on Proposed Rules for Automated Decision Tools Legislation

As we previously reported, restrictions concerning the use of automated tools to screen candidates for employment or employees for promotion within New York City are scheduled to take effect on January 1, 2023. The New York City Department of Consumer and Worker Protection will hold a public hearing concerning proposed rules to implement the closely watched law on Monday, October 24, 2022.

Canada’s Federal Government Proposes Changes to Privacy Act

On June 16, 2022, the government of Canada tabled a bill that would make significant changes to privacy laws impacting employers in the federal jurisdiction. The new legislation, the Digital Charter Implementation Act (Bill C-27) would replace Part 1 of the Personal Information Protection and Electronic Documents Act (PIPEDA) and would create three pieces of legislation in its place, the Consumer Privacy Protection Act (CPPA), the Personal Information and Data Protection Tribunal Act (PIDPTA), and the Artificial Intelligence and Data Act (AIDA).

California’s Draft Regulations Spotlight Artificial Intelligence Tools’ Potential to Lead to Discrimination Claims

California is considering new regulations on the use of technology or artificial intelligence (AI) to screen job candidates or make other employment decisions. If the regulations become law, California would be the first state to adopt substantive restrictions specifically addressing this emerging, and often misunderstood, technology.

EEOC, DOJ Warn Artificial Intelligence in Employment Decisions Might Violate ADA

The U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice (DOJ), on May 12, 2022, issued guidance advising employers that the use of artificial intelligence (AI) and algorithmic decision-making processes to make employment decisions could result in unlawful discrimination against applicants and employees with disabilities.

Burned-Out Workers and Time-Off—Do Employment Laws Allow Flexibility?

As the United States gradually emerges from the pandemic, employers (and especially those in the tech sector whose workforces can easily work remotely) are looking for ways to help frazzled and burned-out employees. In addition, many employees are seeking opportunities to preserve the flexibility they gained during pandemic remote-work arrangements. Time off, company holidays, and workday flexibility are among the top remedies for these concerns. But outmoded state and federal labor laws may impede a new era of worker freedom.

Biden Administration Business Immigration Changes: What to Expect for Employers

On January 20, 2021, President Joseph R. Biden Jr. demonstrated he will pursue a broad immigration reform agenda. The new administration has proposed comprehensive legislation to Congress that aims to create a path to citizenship for millions of undocumented immigrants living in the United States, including so-called “Dreamers” who were brought to this country as children, as well as eliminate green card quotas, reducing lengthy backlogs and improving efficiency for work visa programs. From a business immigration perspective, the proposed efficiency improvements include clearing employment-based green card backlogs and exempting STEM degree holders from green card quotas. It is important to note that this legislative proposal must first pass the U.S. House of Representatives and the U.S. Senate before being signed into law and does not address high-skilled worker visas such as H-1Bs or L-1s.