Mandatory independent bias audit protocols and statutory employment agency liability for third-party AI software screening job applicants on video, voice, and resume models.
Under Title VII, employers may not use employment practices that cause a disparate impact on protected groups without demonstrating business necessity. In Mobley v. Workday, the Northern District of California held that AI recruiting software vendors can be held liable as statutory 'employment agencies' if their algorithmic screening tools perform traditional hiring gatekeeping functions. Concurrently, NYC Local Law 144 mandates annual independent bias audits.
Federal courts are actively adjudicating whether third-party software developers who sell algorithmic screening models qualify as statutory employers or employment agencies under Title VII, ADEA, and ADA.
