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Connecticut CART Act first obligations begin · Oct 1, 2026 · See what changes
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The Equal Employment Opportunity Commission issued technical assistance on May 18, 2023 explaining how Title VII disparate impact analysis applies to software, algorithms and AI used in hiring, promotion and performance management. The EEOC removed its AI guidance documents from its website on January 27, 2025. Technical assistance was never law: Title VII itself still applies, and the EEOC's 2024-2028 Strategic Enforcement Plan still lists technology-related employment discrimination as a priority.
If you use any AI tool in hiring decisions, such as resume screening, interview scheduling, assessment scoring, or reference checking, you can be liable under federal employment discrimination law if the tool has a disparate impact on a protected class. The guidance is gone but the exposure is not. You cannot outsource liability to your AI vendor: the employer is responsible for ensuring the tools it uses comply with Title VII.
Rite Aid deployed facial recognition AI in hundreds of stores to flag suspected shoplifters. The system disproportionately misidentified people of color, women, and younger individuals as threats — causing them to be wrongly accused, followed, and publicly embarrassed in stores. Rite Aid failed to ensure the AI system was accurate and did not take reasonable steps to prevent misidentification harm.
Outcome: FTC banned Rite Aid from using AI facial recognition in retail settings for 5 years. Company required to delete all facial images collected, develop a comprehensive AI governance program, and implement meaningful accuracy testing before using any AI surveillance tool.