ITutorGroup EEOC Settlement
In August 2023, the U.S. Equal Employment Opportunity Commission (EEOC) reached a settlement with iTutorGroup Inc. and its affiliates over alleged age discrimination in the company's hiring practices. The EEOC claimed that iTutorGroup, an online English-language tutoring company, programmed its application software to automatically reject female applicants over the age of 55 and male applicants over the age of 60.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Background
The EEOC filed a lawsuit against iTutorGroup in May 2022, alleging that the company violated the Age Discrimination in Employment Act (ADEA) by using discriminatory software in its hiring process. According to the complaint, iTutorGroup failed to hire over 200 qualified tutor applicants aged 55 and older between late March and early April 2020 due to their age.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
The discriminatory impact was discovered when a rejected applicant reapplied using a more recent birthdate on an otherwise identical application and was subsequently offered an interview.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>
Settlement Terms
As part of the settlement, iTutorGroup agreed to pay $365,000 to the group of rejected applicants age 40 and over.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite news</ref> The company is also required to: - Adopt anti-discrimination policies<ref>Template:Cite web</ref><ref>Template:Cite news</ref> - Conduct anti-discrimination trainings<ref>Template:Cite web</ref><ref>Template:Cite news</ref> - Allow the rejected applicants to reapply<ref>Template:Cite web</ref><ref>Template:Cite news</ref> - Report to the EEOC on the outcomes of the reapplications<ref>Template:Cite web</ref>
The consent decree will remain in effect for five years from its effective date or three years from the date iTutorGroup resumes soliciting or receiving tutor applications, whichever is later.<ref>Template:Cite news</ref>
Significance
The iTutorGroup settlement is considered the first AI discrimination lawsuit settled by the EEOC.<ref>Template:Cite web</ref> It highlights the agency's focus on ensuring that employers' use of AI and automated systems in hiring complies with federal anti-discrimination laws.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The case also demonstrates the EEOC's commitment to addressing age discrimination in employment, even when it involves independent contractors, who are typically not protected under the ADEA.<ref>Template:Cite web</ref>
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