Employment Law Risks and Considerations

One of the most significant areas of concern is the potential for AI to perpetuate or amplify discrimination in hiring and employment decisions. Even when AI tools are designed with the best of intentions, flawed datasets or algorithms can lead to disparate impact on protected classes. Employers must be proactive in auditing their AI systems for bias and ensuring compliance with federal, state, and local anti-discrimination laws.

Another key issue is the use of AI for background checks and applicant screening. If an AI tool accesses applicant criminal history, credit information, or other protected data, it may trigger compliance obligations under the FCRA and related state laws. Employers must also be mindful of privacy concerns, particularly when AI systems collect or analyze biometric data such as facial expressions or voiceprints.

The introduction of AI-powered collaborative robots in the workplace raises additional questions around occupational safety, labor relations, and liability for accidents. Employers should develop comprehensive safety policies, train workers on human-robot interaction best practices, and stay abreast of evolving regulations and case law in this area.

Finally, the growing use of generative AI chatbots like ChatGPT by employees presents risks of data breaches, biased outputs, intellectual property infringement, and quality control issues. To mitigate these risks, employers should implement clear acceptable use policies, AI ethics guidelines, and monitoring protocols for generative AI tools.