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OFCCP Releases New Guidance on AI Use for Federal Contractors

18 Jun



Update Applicable to:Effective date
All covered federal contractors and subcontractorsSee details below

What happened?

On April 29, 2024, the Office of Federal Contract Compliance Programs (OFCCP) introduced a guidance that focuses on the implications of Artificial Intelligence (AI) in the realm of Equal Employment Opportunity (EEO). This guide, enforced by the OFCCP, is intended for federal contractors and subcontractors (collectively referred to as federal contractors) and it delineates their responsibilities.

What are the details?

Federal contractors are obligated to ensure employment equality and affirmative action, without discrimination on any grounds (race, color, religion, sex, etc.), extending the obligation to their use of AI in employment decisions.

While AI can boost efficiency, it may also inadvertently propagate bias and discrimination. To help contractors navigate these challenges, the Office of Federal Contract Compliance Programs (OFCCP) offers guidance to clarify obligations, foster equal employment, and minimize the potential adverse impacts of AI in employment decisions.

Key Bites

  • The guidance clarifies federal contractors’ compliance AI obligations.
  • The guidance provides “promising practices” that, although not mandatory, can be helpful, click here.

Business Considerations

  • Employers should inform applicants, employees, and their representatives in advance if AI is to be used in hiring or employment decisions.
  • Employers should regularly check and analyze whether the use of the AI system is causing any disparate or adverse impact, doing so in three phases: before implementation, during use at regular intervals, and after use.
  • Employers should keep and securely store documentation of the data used to develop or deploy the AI system. If the system is vendor-created, employers should ensure that such documentation is easily obtainable from the vendor.
  • Employers should thoroughly review vendor-created AI systems to ensure they align with EEO obligations.
  • Employers should make sure that AI systems are accessible and inclusive for individuals with disabilities.

Source References


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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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