Scrutiny is set to intensify on Federal contractors’ use of Artificial Intelligence (AI) hiring tools and other technology-based selection procedures, as the Office of Federal Contract Compliance Programs (OFCCP) prepares to revise their information collection strategies.
On August 24, 2023, the Office of Management and Budget green-lighted a proposal by the U.S. Department of Labor’s OFCCP to update the “Itemized Listing”. This tool is utilised to gather data from federal contractors who have been chosen for supply or service audits.
The move by the OFCCP indicates a growing focus on the ways in which federal contractors utilise AI and other emerging technologies in their hiring processes. This could have a significant impact on how such technologies are used moving forward, especially with the increasing emphasis on fairness and transparency in selection procedures.
While the specific changes to the Itemized Listing are yet to be made public, the fact that the OFCCP is explicitly targeting technology-based selection processes illustrates a shift in the regulatory landscape. Legal professionals working in corporations and law firms should be aware of these developments, as they could bring about substantial changes to the compliance requirements federal contractors must meet.
Technology has revolutionized numerous aspects of our lives, including the hiring process. With this advancement, however, comes the need for increased monitoring to ensure these tools do not contribute to inadvertent biases or discrimination in the hiring process. Therefore, it is more crucial than ever for organizations to work closely with their legal departments to ensure compliance with all applicable laws and regulations.