Late yesterday, August 20, 2024, a Federal Court in Texas issued a decision which enjoins – on a nationwide basis – the FTC’s final rule which would effectively ban all non-competes with limited exceptions. While we expect the FTC to appeal this decision, the rule will not go into effect on September 4, 2024, or
The Northern District of California issued an eagerly awaited decision last month in Mobley v. Workday, Inc., where a job applicant claims that Workday’s artificial intelligence (AI) job applicant screening tools violate federal and California anti-discrimination laws. Workday moved to dismiss the claims, on the basis that it is not a covered employer under any of the applicable anti-discrimination laws, which the Court granted in part and denied in part. Specifically, the Court dismissed the plaintiff’s intentional discrimination claims and an aiding and abetting claim under California’s anti-discrimination law, but allowed disparate impact discrimination claims to proceed against Workday based on the argument that Workday was an “agent” of the employers to which the job applicant applied.
Colorado recently became the first state to regulate the use of high-risk artificial intelligence (AI) systems to prevent algorithmic discrimination by developers and deployers of AI systems. The Colorado AI Act is broad in scope and will apply to businesses using AI for certain employment purposes, imposing numerous compliance obligations and potential liability for algorithmic discrimination.