In a landmark decision marking the first case of AI discrimination in the United States, the Equal Employment Opportunity Commission (EEOC) charged iTutorGroup with unlawfully programming their online recruitment software to reject older applicants. The case, filed in 2020, alleged that the software was designed to automatically reject female applicants age 55 or older and male applicants age 60 or older, resulting in over 200 qualified applicants being denied solely based on their age. This conduct was found to violate the Age Discrimination in Employment Act (ADEA). The EEOC sought back pay, liquidated damages, and strong injunctive relief to remedy and prevent future age discrimination. The case serves as a significant reminder of the ethical and legal responsibilities that organizations must adhere to when using AI and other advanced technologies in recruitment and employment decisions.

Background of the Case

Three integrated companies providing English-language tutoring services to students in China, collectively known as "iTutorGroup," were charged by the U.S. Equal Employment Opportunity Commission (EEOC) with unlawfully programming their online recruitment software to automatically reject older applicants based on their age.

According to the EEOC's lawsuit, in 2020, iTutorGroup programmed their tutor application software to automatically reject female applicants age 55 or older and male applicants age 60 or older. Over 200 qualified applicants based in the United States were rejected solely because of their age.

Legal Basis

Such conduct violates the Age Discrimination in Employment Act (ADEA), which prohibits employers from discriminating based on age. The EEOC filed suit in the U.S. District Court for the Eastern District of New York after the parties were unable to reach a pre-litigation settlement through the EEOC's conciliation process.

EEOC's Stance

EEOC Chair Charlotte A. Burrows stated, "Age discrimination is unjust and unlawful. Even when technology automates the discrimination, the employer is still responsible." She emphasized that this case is an example of why the EEOC recently launched an Artificial Intelligence and Algorithmic Fairness Initiative.

The EEOC seeks back pay and liquidated damages for the more than 200 applicants who were denied jobs because of their age. The EEOC also seeks strong injunctive relief designed to remedy and prevent age discrimination in the future.

Impact on Human Resources and Recruitment

This case highlights the potential risks of AI in the recruitment process. Companies must be accountable for the technology they use and ensure that it complies with anti-discrimination laws. Jeffrey Burstein, regional attorney for the EEOC's New York District Office, warned, "Too often, employers think they can refuse to hire older workers because of their age. It is illegal, and the EEOC's prosecution of this case will remind employers that age discrimination has consequences."

Importance of AI Ethical Considerations

The case underscores the importance of AI ethical considerations. Organizations must ensure that the use of their AI and algorithmic tools does not lead to discrimination and that they are transparent and fair. Additionally, organizations must ensure data privacy and provide opportunities for human intervention.

The EEOC recently launched an Artificial Intelligence and Algorithmic Fairness Initiative to ensure that the use of software, including artificial intelligence (AI), machine learning, and other emerging technologies used in hiring and other employment decisions comply with federal civil rights laws.

Conclusion

The EEOC vs. iTutorGroup case serves as an important warning to all organizations using AI and algorithmic tools, emphasizing the need to implement these advanced technologies in compliance with legal and ethical standards. HR professionals must take proactive measures to ensure that their recruitment processes are both efficient and fair, avoiding legal disputes. The case also highlights the severity of age discrimination and the ethical and legal responsibilities that organizations must adhere to when using advanced technologies.