HR & Payroll

Artificial Intelligence Compliance Risks for Employers! What Should Employers Do to Avoid this New Compliance Risk?

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    Margie Faulk - PHR, SHRM-CP
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    Oct 20, 2023
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    13:00 PM EST
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    90 Min
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83% of employers and 99% of Fortune 500 companies use some type of automated tool in their hiring processes, according to the Equal Employment Opportunity Commission (EEOC).


Artificial intelligence (AI) is rapidly transforming the way many business functions operate, and HR departments aren’t immune. AI is being used to automate tasks, improve decision-making, and provide personalized experiences for employees; however, as with any new technology, there are compliance issues that need to be addressed when using AI in HR. And we all know the HR department is certainly no stranger to compliance.


Employers can't rely on a vendor's assurances that its AI tool complies with Title VII of the Civil Rights Act of 1964. If the tool results in an adverse discriminatory impact, the employer may be held liable, the U.S. Equal Employment Opportunity Commission (EEOC) clarified in new technical assistance on May 18. The guidance explained the application of Title VII of the Civil Rights Act of 1964 to automated systems that incorporate artificial intelligence in a range of HR-related uses.


"First, front-line HR managers and procurement folks who routinely source AI hiring tools do not understand the risks. Second, AI vendors will not usually disclose their testing methods and will demand companies provide contractual indemnification and bear all risk for the alleged adverse impact of the tools."


The EEOC puts the burden of compliance squarely on employers. "If an employer administers a selection procedure, it may be responsible under Title VII if the procedure discriminates on a basis prohibited by Title VII, even if the test was developed by an outside vendor," the agency states in its technical assistance guidance.


We are seeing companies experiment with using AI in the workplace, which often raises questions like, how can employers use AI? Should hiring managers use AI? What are the legal parameters around AI in the workplace?


A few key areas concerning AI for HR include recruiting, employee monitoring, and data privacy.


Tools like resume scanners, chatbots, video interviewing software, and testing software are often used during the recruiting or hiring process. While you might not think about this as artificial intelligence since they have been around for a while, they use different aspects of AI. These tools also save time and make the job of the recruiter or hiring manager easier.


What else does AI impact in the workplace?

·       Privacy Breaches

·       Transparency

·       Accountability

·       Hiring & Selection

·       Discrimination

·       Violations of the American Disabilities Act (ADA)

·       Confidentiality & Data Privacy


States are also reviewing their exposure to AI and as a result, they already have laws in place related to the use of artificial intelligence in the workplace. This will impact Employers in multi-state locations, especially remote employees.


Session Highlight:

·      Learn how AI impacts the workplace and what the risks are according to the Equal Employment Opportunity Commission (EEOC) given discrimination                  allegations.

·       Learn what the EEOC's new guidelines are for Employers to avoid risk with the vendor tools they use to identify hiring and other AI software they use to                streamline their processes.

·       Learn what court cases are pending that may determine the fate of known Employers.

·       Learn what Employers can do to mitigate AI issues and concerns.

·       Learn what states already have AI regulations and what the penalties are for violating those regulations.

·       Learn what policies Employers should have to avoid non-compliance due to the AI tools they are using.

·       Learn how criminal background checks AI tools can violate Ban the Box regulations.

·       Learn what safeguards Employers can put in place that will assist in reducing compliance risks.

·      Learn how training of managers/supervisors and other professionals should be mandated to attend training to circumvent inadvertent violations due to not           being prepared.


Why Should You Attend:


There have been significant court cases that are pending, and litigation is expected to result in many challenges for Employers. Employers need to take these cases seriously as well as federal and state regulations.


Current cases include Workday Inc., a maker of AI applicant screening software, which is in the middle of a class action lawsuit that alleges its products promote hiring discrimination. The lawsuit, filed in February 2023 alleges that Workday engaged in illegal age, disability, and race discrimination by selling its customers the company’s applicant-screening tools, which use biased AI algorithms.


Other pending court cases will reveal the risk that Employers are taking. They need to prepare to include policies to protect the company, consumers, and employees.


Benefits For Attending:


This training will provide you with clarity on legal parameters around AI in the workplace and how to comply & avoid court cases. In addition, each training I offer free customized compliance tools for all attendees. Also get:

·       SHRM Recertification PDU Credits

·       Free customized compliance tools in the form of guides, templates, policies, and toolkits

·       Additional HR Compliance Supplemental Slides

·       Free answer to all questions even after the training ends


Who Should Attend:

·       All Employers

·       Business Owners

·       Company Leadership

·       Compliance professionals

·       HR Professionals

·       Managers/Supervisors

·       Employers in all industries

·       Small Business Owners

·       Large Business Owners


Ask your question directly from our expert during the Q&A session following the live event.


Margie Faulk is a senior level human resources professional with over 15 years of HR management and compliance experience. A current Compliance Advisor for HR Compliance Solutions, LLC, Margie, has worked as an HR Compliance advisor for major corporations and small businesses in the small, large, private, public, Non-profit sectors and international compliance.  Margie has provided small to large businesses with risk management strategies that protect companies and reduces potential workplace fines and penalties from violation of employment regulations. Margie is bilingual (Spanish) fluent and Bi-cultural.

Margie’s area of expertise includes Criminal Background Screening Policies and auditing, I-9 document correction and storage compliance, Immigration compliance, employee handbook development, policy development, sexual harassment investigations/certified training, SOX regulations, payroll compliance, compliance consulting, monitoring US-based federal, state and local regulations, employee relations issues, internal investigations, HR management, compliance consulting, internal/external audits, and performance management.

Margie holds professional human resources certification (PHR) from the HR Certification Institution (HRCI) and SHRM-CP certification from the Society for Human Resources Management. Margie is a member of the Society of Corporate Compliance & Ethics (SCCE).

1.5 SHRM-CP & 1.5 HRCI Credits

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