Summary
On 9 January 2025, New Jersey Attorney General Matthew J. Platkin, along with the New Jersey Division on Civil Rights (DCR), initiated a Civil Rights and Technology Initiative to combat discrimination stemming from artificial intelligence (AI) in hiring processes. A guidance document outlines how the New Jersey Law Against Discrimination (LAD) applies to algorithmic discrimination, emphasising employer accountability even if they do not develop the AI tools themselves.
Key Points
- The LAD applies to “algorithmic discrimination,” holding employers liable for discriminatory outcomes from AI tools regardless of their direct involvement in developing the technology.
- Employers could face disparate treatment or disparate impact claims if AI tools apply biased criteria, either directly or indirectly, towards protected classes.
- The guidance warns that using AI should not impede the provision of reasonable accommodations for diverse employee needs.
- Liability cannot be transferred to AI vendors; employers must ensure compliance with LAD even without understanding the inner workings of AI algorithms.
- Best practices include creating an AI oversight group, implementing training on algorithmic bias, and conducting regular audits of AI tools.
Why should I read this?
If you’re an employer or involved in hiring processes, this article is a must-read! It dives into how AI is reshaping labour practices and what you should be cautious about to avoid legal headaches. The guidance from New Jersey sets a precedent that could influence hiring practices across the country, making awareness crucial for staying compliant.