Many job applicants and employees may not realize that Artificial Intelligence (AI) can influence employment opportunities before they ever speak with a recruiter.

Employers may use AI-powered tools to screen resumes, rank applicants, analyze video interviews, monitor productivity, and assist with employment decisions. While these technologies can improve efficiency, they also raise questions about fairness, transparency, and compliance with New York employment laws.

How Is AI Used in Employment?

AI in the employment context generally refers to software that uses algorithms, machine learning, data analysis, or predictive tools to assist with employment-related decisions.

For employers, these tools can help streamline hiring and workforce management processes, particularly when reviewing large volumes of applications or employee data.

For job applicants and employees, however, the increasing use of AI may influence how hiring, promotion, performance, and other employment-related decisions are made, often before any direct interaction with a recruiter or manager occurs.

Why Employers Are Turning to AI

Employers across New York State are increasingly turning to AI technology to improve efficiency and support workforce management. AI-powered tools can help streamline recruiting efforts, reduce administrative burdens, process large volumes of job applications, identify candidates who appear to meet desired qualifications, and assist with workforce planning and management. These technologies may allow employers to make hiring and operational decisions more quickly and consistently. However, while AI can serve as a valuable tool in the employment process, employers remain responsible for ensuring that employment decisions are fair, legally compliant, and subject to appropriate human oversight.

Concerns About Bias and Discrimination

Employers may face legal risks if AI-assisted decisions create a discriminatory impact, even if no intentional discrimination occurred. Likewise, applicants and employees who believe they were unfairly affected by automated decision-making may wish to seek legal guidance.

One of the most significant concerns surrounding AI in employment is the potential for unintentional bias. AI systems often rely on historical data to make recommendations. If that data reflects past disparities, the technology may unintentionally favor or disadvantage certain groups.

Potential concerns related to AI-assisted employment decisions that could lead to employment law claims may involve:

• age;
• race;
• criminal history discrimination;
• gender;
• disability;
• national origin; or
• other protected classifications.

Why Human Oversight Remains Important

While AI can help employers identify trends and process information more efficiently, it should not replace human judgment. Employers should carefully review AI-generated recommendations and remain actively involved in hiring, promotion, discipline, and termination decisions. Human oversight can help identify potential errors, reduce the risk of unintended bias, and ensure employment decisions are based on legitimate, job-related factors rather than solely on automated assessments.

AI and Disability Accommodation Concerns

Employers using AI should also consider whether automated hiring tools create barriers for applicants or employees with disabilities. Certain technologies, including video interview analysis software, online assessments, and automated screening tools may not work equally well for all individuals. Employers should evaluate whether accommodations may be necessary and ensure their hiring and employment practices remain accessible and compliant with applicable employment laws.

New York State Employment Laws Still Apply to AI Decisions

Employers throughout New York State should remember that existing employment laws continue to apply when AI is used in workplace decision-making. The New York State Human Rights Law prohibits discrimination against protected groups and expressly recognizes claims based on a practice’s discriminatory effect, even when there is no discriminatory intent. As a result, employers may face legal challenges if AI-assisted hiring, promotion, discipline, or termination practices disproportionately affect certain applicants or employees. For this reason, employers should carefully evaluate AI tools, maintain meaningful human oversight, and regularly review employment practices for potential bias.

New York City’s Rules for Automated Employment Decision Tools

Employers hiring for positions connected to New York City should be aware of Local Law 144 of 2021, which regulates the use of certain automated employment decision tools. The law generally requires covered employers and employment agencies to conduct bias audits, provide notices, and make certain audit information publicly available before using covered tools in hiring or promotion decisions.

This law demonstrates the growing attention lawmakers are giving to the use of AI in employment practices. Employers should ensure their hiring technologies comply with applicable legal requirements, while applicants should understand that certain transparency protections may apply when automated tools are used.

Can Applicants Find Out Whether AI Was Used?

Certain laws and regulations may require employers to provide notice when automated employment decision tools are used in hiring or promotion decisions. While disclosure requirements vary, increased transparency remains a growing area of focus for lawmakers and regulators. Applicants who have concerns about the role technology played in an employment decision may wish to ask questions about the hiring process when appropriate.

Understanding how AI is used can help individuals make informed decisions about their careers and workplace rights.

When Should You Consult an Employment Attorney?

As AI becomes more common in hiring and workplace management, both employers and employees should understand the opportunities and legal risks and potential claims new technology may present. AI-assisted employment decisions may give rise to legal claims when automated tools contribute to unlawful employment practices. Depending on the circumstances, potential claims could include disparate impact discrimination, failure to provide reasonable accommodations, disability discrimination, age discrimination, retaliation, or violations of applicable state and local employment laws.

Employers can benefit from taking proactive steps to ensure compliance with evolving employment laws, while employees should be aware of their rights when automated systems are involved in workplace decisions. Consulting with an employment law attorney may help individuals and businesses navigate emerging issues while reducing the risk of costly disputes.

A knowledgeable employment attorney can help you gain an understanding of the unique difficulties each workplace situation presents and work toward a solution that benefits you. Tully Rinckey attorneys have the experience to assist both employers and employees in achieving their objectives, regardless of the matter, which may include discrimination, harassment, or any other claim involving worker rights or employer responsibilities. Call 8885294543 or contact us online today for a consultation and get an advocate who will fight for your rights and help secure your career and your future.

Benjamin Westerman, Esq., a Senior Associate, focuses his practice on federal sector labor and employment and New York State employment law out of Tully Rinckey PLLC’s Latham office. Benjamin represents clients in federal, state, and private employment law matters, including claims of discrimination, harassment, retaliation, whistleblower actions, and disciplinary matters.