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.

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.

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.

Settlement Terms

As part of the settlement, iTutorGroup agreed to pay $365,000 to the group of rejected applicants age 40 and over. The company is also required to: - Adopt anti-discrimination policies - Conduct anti-discrimination trainings - Allow the rejected applicants to reapply - Report to the EEOC on the outcomes of the reapplications

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.

Significance

The iTutorGroup settlement is considered the first AI discrimination lawsuit settled by the EEOC. It highlights the agency's focus on ensuring that employers' use of AI and automated systems in hiring complies with federal anti-discrimination laws. 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.

References

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