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First U.S. AI hiring discrimination lawsuit settled by EEOC

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AI hiring software rejected 55+ applicants

According to the joint filing, iTutorGroup has agreed to pay $365,000 to over 200 job applicants who were allegedly rejected due to their age. Women over 55 and men over 60 were rejected, according to the EEOC’s claim.

The company denied any wrongdoing in the settlement, Reuters reported.

The companies, iTutorGroup, Inc., Shanghai Ping’An Intelligent Education Technology Co., Ltd., and Tutor Group Limited (collectively iTutorGroup) hire thousands of U.S.-based online tutors each year to teach English to students in China, according to the EEOC’s 2022 statement.

The statement describes how the company programmed its AI software to “automatically reject older applicants because of their age.”

“Age discrimination is unjust and unlawful. Even when technology automates the discrimination, the employer is still responsible,” EEOC Chair Charlotte A. Burrows said. “This case is an example of why the EEOC recently launched an Artificial Intelligence and Algorithmic Fairness Initiative. Workers facing discrimination from an employer’s use of technology can count on the EEOC to seek remedies.”

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