Crucial Legal Considerations for Employers Regarding AI Use in the Workplace
Nearly every workplace has caught the AI bug, and we’ve all integrated it in one way or the other into our processes. But, even though AI might be the new life-saving productivity hack, there are still some crucial elements to keep in mind before implementing the technology in the workspace.
The legal landscape surrounding AI has seen some significant regulations in recent months. As such, it’s no longer about deploying the best tools in your day-to-day operations. Compliance is now a factor business owners must consider.
In this article, we discuss some important considerations for employers as they implement AI systems into company operations:
Federal and State Laws
The potential for AI might be limitless, but that doesn’t mean organizations can use them without boundaries. In recent months, more federal and state guidelines have determined how employers can utilize artificial intelligence technologies within the office space.
For instance, Colorado enacted AI legislation in May 2024 that requires developers and deployers of AI systems to use reasonable care with these technologies to avoid occasions of discrimination, especially with tools that are involved in making consequential decisions.
Elsewhere, the State of New York has prohibited using an automated employment decision tool (AEDT) during screening processes for employment and promotion in the city unless specific factors are in place.
Some criteria required for businesses to utilize AI tools during hiring or promotion include a published bias audit of the tool one year before its use and a 10-day notice to candidates about the deployment of AI and the qualifications it’ll evaluate in the screening procedure.
Although AI tools are still developing, the regulations surrounding them are coming thick and fast. As these technologies evolve, so will the laws. Employers must stay up-to-date with AI guidelines at the state and federal levels and work with their legal teams to remain compliant.
Anti-discriminatory, Civil Rights, and Data Privacy Regulations
New AI guidelines are being established across the US. As organizations do their best to stay within the boundaries of these laws, they must also remember existing employment legislation.
Regulations like the Civil Rights Act and the Americans with Disabilities Act prohibit discrimination of any kind against individuals based on race, color, religion, sexual orientation and identity, and disabilities.
Organizations must know that utilizing AI within the workplace must comply with these laws. The EEOC has taken some steps to ensure that companies do not breach already-existing guidelines as they deploy AI in day-to-day operations.
Some notable measures from the agency include issuing guidance on how the Americans With Disabilities Act applies to AI tools in employment decisions and launching an initiative to help businesses stay within the boundaries of the Civil Rights Act as they utilize AI.
Aside from the anti-discriminatory laws, employers must also consider data privacy regulations since AI tools typically require employee data to assist with business-related decisions. Organizations must ensure that they not only inform and request consent from staff members about the information collected by AI technologies but also take robust steps to prevent unauthorized access to these pieces of data.
Transparency Within the Workspace
A common thread that runs through almost all regulations regarding AI in the US is the need for employers to inform their workers and prospective employees about the deployment of AI in day-to-day operations and hiring processes.
For example, the recent guidelines from the White House on AI use in the office require employers to provide prior notice to staff about utilizing artificial intelligence in the workspace.
However, the regulations go beyond simply informing employees about the latest AI tools that the company will incorporate into office operations. It also involves seeking input and feedback from workers regarding the design, development, testing, and use of artificial intelligence systems at work.
In addition, workplace AI tools must undergo regular independent audits, with the results made public, to evaluate the performance of the systems in line with employee rights and safety.
In other words, transparency is a non-negotiable factor when using AI in the workplace, and employers must ensure there are no dark corners with how and why these tools are deployed.
Final Though: Seek Expert Legal Counsel to Maintain AI Compliance With US Employment Laws
Undoubtedly, AI is here to stay. However, government regulations will define how we use it in the workspace. Anti-discriminatory and civil rights laws already apply to these tools, but new guidelines are coming.
While employers leverage AI for heightened productivity and efficiency, they must also take steps to stay compliant with the laws. Working with an expert legal team to review your company’s AI tools and the frameworks surrounding them is critical.
You want to avoid potential discrimination or data mismanagement claims due to AI use in the workplace. We’re experts in US employment legislation at the Law Office of Sheri Oluyemi, including recent AI guidelines. Our team can help evaluate your company’s deployment of AI technologies to ensure you stay compliant with US federal and state regulations. Reach out to us today to schedule a free teleconference consultation.
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