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The OFCCP Releases Guidance on Artificial Intelligence 

Federal contractors are obligated by equal employment opportunity (EEO) laws to prevent discrimination based on various factors, including race, color, religion, sex, sexual orientation, gender identity, national origin, disability, and status as a protected veteran. These obligations extend to the use of artificial intelligence (AI) in employment processes such as hiring, promotions, compensation, and terminations. Recognizing the potential for AI systems to perpetuate bias and discrimination, President Biden issued an Executive Order in October 2023, directing the Department of Labor (DOL) to develop guidelines addressing non-discrimination in hiring practices involving AI and other technology-based systems. In response, the agency unveiled an Artificial Intelligence (AI) landing page on April 30, 2024, featuring comprehensive guidance, frequently asked questions (FAQs), and best practices tailored for federal contractors to enhance their employment processes. 

The guidance covers key concepts such as: 

  • The definition of AI, algorithms, and automated systems; 
  • Compliance obligations related to EEO laws and adverse impact; 
  • Risks associated with the use of AI; 
  • OFCCP’s role in investigating AI usage; 
  • Vendor responsibilities; and  
  • Best practices for implementing AI in employment processes.  

The guidance also emphasizes transparency, fairness, and accessibility considerations in the use of AI systems. 

Federal contractors are encouraged to review the OFCCP’s guidance and best practices to ensure that their use of AI in employment processes aligns with recommended guidelines, thereby reducing adverse impact and promoting fair and equitable practices. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.