Page 24 - BusinessWest September 2, 2024

Guidance of Federal Contractors:
On April 29, the DOL Office of Federal Contract Compliance Programs issued guidelines aimed at federal contractors utilizing AI, which are valuable for all employers to consider.
These guidelines emphasize sev- eral critical practices for the ethical and effective deployment of AI tools in the workplace. Employers are advised to ensure that AI technologies are
not only fair and job-related, but also regularly monitored for biases that could inadvertently impact decision- making processes. Additionally, keep- ing employees well-informed about the use and implications of AI systems
fosters transpar- ency and helps mitigate poten-
tial concerns or misunderstandings.
“Ensure transparency by clearly communicating to employees and applicants about the use of AI in employment decisions and their
rights related to AI.”
guiding the development and imple- mentation of AI technologies in the workplace. These principles under- score the importance of ethical consid- erations and employee welfare in AI deployment. They stress the need to keep workers informed about how AI is utilized, ensure transparency in AI deci- sion-making processes, and safeguard worker data throughout the entire AI life cycle.
These guidelines aim to foster a fair and secure work environment where AI enhances operations while upholding privacy and ethical standards. Adher- ing to these principles helps employers build trust, mitigate risks, and integrate
AI technologies responsibly for the benefit of all stakeholders.
State-level Developments
New York: Since July 5, 2023, New York city has a law regulating automated employment decision tools (AEDTs). Employers must conduct annual audits to check for bias, pub- lish the results, and let applicants know when AEDTs are used. In addi- tion, a new bill introduced this past February aims to regulate AEDTs across New York State. This bill requires annual bias analyses and public summaries of the findings.
New Jersey: In February, two bills were introduced in New Jersey to manage AI in hiring. One bill requires annual bias audits for AEDTs. The other regulates AI-enabled video interviews, demanding transparency and consent from applications.
Other States: California is work- ing on regulations to prevent algo- rithmic discrimination and ensure
AI tools are used transparently and responsibly. Starting Feb. 1, 2026, Colorado will require AI developers and users to protect against discrimi- nation with high-risk AI systems. And both Illinois and Maryland have laws in place requiring employers to notify and get consent from applicants before using AI in hiring.
What Should Employers Do?
To navigate these new regulations and ensure compliance, employers should:
• Stay informed. Regularly review federal and state guidelines on AI use in the workplace.
• Conduct regular audits of AI tools to detect and mitigate bias or inequi- table outcomes.
• Ensure transparency by clearly communicating to employees and applicants about the use of AI in employment decisions and their rights related to AI.
• Provide training to HR and man-
Workplace >> Continued on page 28
These proactive
measures not only
enhance compli-
ance with federal
regulations, but also
promote a more
inclusive and equi-
table work environ-
ment where AI tech-
nologies are used
responsibly to benefit both employers and employees alike.
SABBA SALEBAIGI-TSE
AI Principles for Employers: On May 16, the DOL introduced a com- prehensive set of principles aimed at
24 SEPTEMBER 2, 2024
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