What happened?

On January 9, 2025, New Jersey’s attorney general and the Division of Civil Rights (DCR) launched the Civil Rights and Technology Initiative to tackle AI-related discrimination. They also issued guidance on algorithmic discrimination under the New Jersey Law Against Discrimination.

Overview:

New Jersey has recently taken significant steps to address discrimination based on the use of artificial intelligence (AI) and other advanced technologies.

• This initiative underscores New Jersey’s commitment to protecting its residents from discrimination while fostering technological innovation.

• Employers should exercise caution when implementing AI decision-making tools and stay aware of how the law impacts adopting new technologies.

• Recommended Practices:
  • Understand the Tools: Employers should thoroughly understand the tools they use, including their design and training processes.
  • Train Employees: Ensure employees know how to use the tools correctly.
  • Audit the Tools: Regularly check for biases and disproportionate impacts.
  • Provide Notice: Inform applicants and employees about the use of automated tools.

Additional Details

• AI Bias is Illegal: The New Jersey Law Against Discrimination (LAD) prohibits algorithmic discrimination in employment, housing, and credit, holding employers liable for biased AI outcomes, even when using third-party vendors.

• Civil Rights Innovation Lab: The new agency will develop AI tools to detect discrimination and enhance enforcement of AI-related complaints, collaborating with experts and stakeholders to advance DCR’s mission to prevent, address, and remedy discrimination.

• Guidance on Algorithmic Discrimination: The guidance document explains how LAD applies to AI and automated decision-making tools, providing examples of how these technologies can result in bias and discrimination, covering:
  • Design: Bias can stem from the tool’s model, algorithm, or inputs.
  • Training: Using biased data sets can lead to discriminatory outcomes.
  • Deployment: Inconsistent use or misuse of tools can create a feedback loop of biased decisions.

• Training: Using biased data sets can lead to discriminatory outcomes.

• Deployment: Inconsistent use or misuse of tools can create a feedback loop of biased decisions.

• Types of Discrimination Claims:
  • Disparate Treatment: Intentional discrimination or using discriminatory tools on their face.
  • Disparate Impact: Tools that disproportionately affect protected groups, regardless of intent.
  • Failure to Accommodate: Tools that do not account for reasonable accommodations for disabilities, religion, pregnancy, or breastfeeding.

• Public Education and Training: New Jersey will offer public education and compliance training on AI-related discrimination. Employers should take advantage of these resources to stay ahead of enforcement trends.

• National AI Compliance: New Jersey joins other states like New York, Colorado, and Illinois in regulating AI discrimination, with more states expected to follow.

“Please mark the effective date on your calendar as a reminder to be fully prepared and ready to ensure compliance with applicable laws and regulations.”

Source References

• NJ AG Press Release: New Guidance on Algorithmic Discrimination, Creation of Civil Rights Innovation Lab
• NJ DCR Guidance on Algorithmic Discrimination
• New Jersey Issues Guidance Aiming to Clarify Remote Workers’ LAD Coverage (VensureHR)

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