Late last year, Forbes magazine reported on a Resume Builder survey. That survey revealed that nearly two-thirds (65%) of employers intended to use artificial intelligence “to screen and reject candidates without human input or oversight” in 2025. While AI can help businesses operate more efficiently and cost-effectively, it also poses risks. AI is only as good as its programming, and AI hiring tools can engage in discrimination if not correctly configured. New York is taking action to protect workers who have been denied employment or otherwise harmed by AI that yielded discriminatory results. Whether the discrimination you encountered occurred because of AI flaws or human actors, you may have the right to seek justice in court, so do not delay in speaking to a knowledgeable New York employment discrimination lawyer right away.
The New York State legislature is currently considering bills that would strengthen protections for workers and job candidates against AI-generated discrimination in hiring.
Senate Bill 1169 -- the New York “AI Act” -- takes aim at algorithmic discrimination. The State Senator who proposed the bill, Kristen Gonzalez, highlighted a “growing body of research shows that AI systems that are deployed without adequate testing, sufficient oversight, and robust guardrails can harm” New Yorkers in many ways, including denying them the opportunity to compete for jobs.
The bill defines “algorithmic discrimination” as “any condition in which the use of an AI system contributes to unjustified differential treatment or impacts, disfavoring people based on their actual or perceived” membership in one or more statutorily defined protected classes, such as age, race, ethnicity, religion, national origin, sex/gender, sexual orientation, gender identity, disability, etc.
Senate Bill 1169 has already passed the State Senate and is pending before the Assembly.
Assembly Bill 768, also known as the““Protection Act,” takes additional steps. The Protection Act would, beginning in 2027, impose upon each entity that uses AI a legal duty to “use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination.” The bill allows deployers of AI to prove they met this duty by retaining an “independent third party” to perform “bias and governance audits.”
New York City has already taken action. Effective as of July 2023, New York City’s Local Law 144 establishes worker protections related to employers’ use of AI for employment-related decisions. The law requires mandatory bias audits whenever AI tools hold a “predominant” role in decision-making. New York City law defines covered AI tools as any “computational process, derived from machine learning, statistical modeling, data analytics, or [AI], that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that impact natural persons.”
A Federal Collective Action Targeting AI and Age Discrimination in Hiring
Some workers have begun seeking justice through the courts using federal protections. One example is playing out in California. The worker, D.M., was a man in his 40s and 50s with multiple degrees and an IT certification. Over an extended period, the worker applied for more than 100 different jobs. Despite his skills, education, and experience, he was rejected every time.
Although the jobs were with different employers, they had one thing in common: all of the employers used the same “human resources management services” software company to screen job applicants.
The man’s case alleged that the software company’s AI tool discriminated based on race, age, and disability. Specifically, the tool knew from D.M.’s data entries that he graduated from a historically black college in 1995, indicating he was very likely African American and over 40 years old.
Last month, the federal judge overseeing the case granted a request allowing the lawsuit to proceed as a nationwide collective action under the Age Discrimination in Employment Act. Observers consider the judge’s decision to grant certification in this case a significant win for workers in the fight against discrimination in hiring.
As the state of employment discrimination law and AI continues to evolve, you can count on the diligent New York employment discrimination attorneys at Phillips & Associates, PLLC. Our team is dedicated to leveraging the latest developments in the law to help workers and job applicants secure justice and combat workplace discrimination. Contact us online or call (833) 529-3476 to schedule a free and confidential consultation.