As AI tools become more common in candidate screening, interviews, and performance management, regulators increasingly view these systems as part of an employer’s overall decision‑making process. This means that if AI‑influenced decisions create discriminatory outcomes, employers may still face liability under state and federal employment laws.
Best Practices Include:
- Conduct annual audits of AI programs for bias when required by law and as a proactive compliance measure.
- Increase transparency by making audit findings publicly accessible where required (such as NYC), and by adopting similar transparency practices across jurisdictions.
- Update your Employee Handbook to include where AI tools are utilized in your organization and to reinforce that final employment decisions are made by humans, not automated systems.
- Use extra caution if employees are multi-jurisdictional, remote, or hybrid as AI‑related hiring laws vary significantly across states and cities, creating a complex compliance landscape.
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