Artificial intelligence (AI) is transforming the workplace. From résumé screeners to video interview tools and performance monitoring software, automated decision-making promises speed and efficiency. But for employers, these tools carry serious legal risks. When algorithms affect who gets hired, promoted, or fired, employers remain responsible under federal, state, and local laws. Missteps can trigger discrimination lawsuits, regulatory enforcement, and reputational damage. In this article, we’ll break down the federal employment laws, state and local AI regulations, recent lawsuits and enforcement actions, and a compliance framework employers can use to stay ahead.
Why Is Automated Hiring/Firing Legally Risky?
AI systems can unintentionally replicate or amplify human bias. For example:
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