How Should Employers Use AI in the Workplace?
Should an employer disclose when AI is being used to make decisions about you? The US Department of Labor seems to think they should. Last week, the Department of Labor issued new guidance concerning how employers, and developers of AI, use AI programs. The most significant recommendations within the new guidance revolve around “significant employment decisions” and transparency about the usage of AI in the workplace. The Department of Labor’s focus is to protect workers’ rights in the workplace by limiting the possibility of AI undermining workers’ wage and hour rights or violating anti-discrimination protections.
One injury workers face from AI in the workplace is an unfair rejection of an application because of automated hiring software. A large portion of the workforce, around 75% of employers, have used automated hiring software to filter applications for open positions. One criterion that may get a candidate immediately rejected because of such software is a gap in their employment history that is longer than six months. While such gaps can be easily explained by circumstances that have no bearing on a worker’s ability to perform in the position, AI programs may terminate the application before a real person can review the worker’s resume. Another reason why AI might reject an otherwise acceptable candidate is that the candidate did not list “floor-buffing” as a skill for a retail clerk position, despite having every other desired criterion. While executives have been aware of this issue for years, it seems like the Department of Labor does not believe employers are using the best possible practices to protect workers’ rights from damage caused by AI programs.
Beyond the application cycle, the Department of Labor also provides guidance on how employers can spread the benefits of AI usage with employees. A common concern is how AI might advance to a point where it is able to effectively replace people in a variety of jobs, but the Department of Labor seems to be attempting to curb this issue before it can take root. By requiring employers to consider ways of spreading the benefits provided by AI, such as increased profits or enhanced educational systems, employees can not only rest assured that their position is safe, but also benefit from increased wages or reduced hours without a loss of pay.
A large portion of the workforce, around 75% of employers, have used automated hiring software to filter applications for open positions
Delving further into the idea of benefitting workers with AI in the workplace, the Department of Labor has also issued guidance on how employers can, and should, provide training opportunities for workers to learn how to use AI in a way that complements their work product. Such efforts can prevent job displacement due to evolutions in AI technology, while providing the worker with more marketable skills.
The new guidance issued by the Department of Labor also outlines practices for developers of AI programs that revolve around workers. By providing employers with the ability to make decisions about consent and control for such sensitive data, these developers would be contributing to a safer working environment. Furthermore, limitations about what sort of data employers should record are included, making sure such data is limited to such that is necessary for legitimate business purposes.
While fears about the untapped potential of AI in the workplace abound, the Department of Labor has taken a crucial step in mitigating such potential. By issuing worker-centric guidance to employers, the Department of Labor has shown that its priorities lie in restricting AI’s rampant usage and, instead, enhancing the quality and safety of workplaces around the country.
Davis Faw
Davis Faw is a second-year law student at the University of North Carolina’s School of Law. Prior to law school, Davis taught 5th grade English. Davis strives to stay ahead of changes within the classroom and the workplace.