Adam S. Forman, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Detroit and Chicago offices, was quoted in the Bloomberg Law Daily Labor Report, in “Employers Find Openings to Share AI Bias Liability with Vendors,” by Lilah Burke.
Following is an excerpt:
Early signs indicate that employers hit with hiring bias lawsuits over their use of artificial intelligence-based tools will get the opportunity to try to share liability with vendors who design the technology.
These tech developers have thus far avoided getting enmeshed in lawsuits when job applicants claim the human resources tools cause algorithmic discrimination, violating civil rights laws by blocking them from a fair shot at securing employment.
But novel legal arguments by job-seekers, as well as attempts by employers to share or pass off liability, could force vendors into the litigation fray just as the use of AI in recruitment and selection becomes both more common and closely scrutinized by federal agencies and the courts. …
Shifting the Blame …
There’s also a possibility of an employer looping an AI vendor into an existing discrimination lawsuit as a third-party defendant.
“If a vendor violates an agreement that the tool will not result in unlawful bias, the employer may be able to claim breach of contract, as well as unfair and deceptive trade practices,” said Adam Forman, who co-leads the AI practice at Epstein Becker Green.