News & Analysis as of

Disparate Impact

Dickinson Wright

AI on Trial: Implications of the Workday Lawsuit for Automated Hiring

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Artificial intelligence continues revolutionizing HR and talent acquisition, promising efficiency and scalability in hiring processes. However, as a recent lawsuit against Workday shows, automation does not absolve employers...more

Franczek P.C.

Week in Review: 7 Legal Developments you Should Know About

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As the academic year is now wrapping up, we hope that the final weeks of school have been relatively stress free, and that our clients are now looking forward to some slower summer days. Here at Franczek, we have continued to...more

Parker Poe Adams & Bernstein LLP

EEOC Ends Payments to State Agencies to Investigate Gender Identity and Disparate Impact Claims

On May 20, the Equal Employment Opportunity Commission announced that it will no longer provide funding to state and local EEO agencies for purposes of investigating or prosecuting discrimination charges based on allegations...more

Holland & Knight LLP

Federal Court Allows Collective Action Lawsuit Over Alleged AI Hiring Bias

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Derek Mobley, a man over 40 years old, sued Workday Inc. claiming that Workday's artificial intelligence (AI)-driven applicant screening tools have systematically disadvantaged him and other older job seekers. Mobley...more

Cooley LLP

EEOC Opens 2024 EEO-1 Data Collection – With a Title VII Compliance Reminder

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The Equal Employment Opportunity Commission (EEOC) recently opened its 2024 EEO-1 Component 1 data collection portal and announced that covered employers have until June 24, 2025, to submit and certify their EEO-1 reports....more

Kelley Drye & Warren LLP

EEOC Doubles Down on Targeting of Disparate Impact Liability

Acting EEOC Chair Andrea Lucas issued a public statement regarding the 2024 EEO-1 Component 1 data-collection portal. The statement serves as a reminder for employers to complete their reporting obligations by June 24, 2025,...more

FordHarrison

EEO-1 Portal Open for Filing May 20, 2025

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The EEOC announced the opening of the 2024 EEO-1 Component 1 data collection on May 20, 2025, as anticipated in our previous legal alert on the topic.  With the opening of the portal, covered employers are now able to submit...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

EEOC Acting Director Warns No ‘Diversity Exception’ to Title VII in Announcing EEO-1 Reporting Period Opening

On May 20, 2025, the U.S. Equal Employment Opportunity Commission (EEOC) opened the platform for employers to submit EEO-1 reports. In doing so, EEOC Acting Director Andrea Lucas warned employers not to use the data to take...more

Akerman LLP - HR Defense

The Trump Administration Targets Disparate Impact Discrimination Liability: What Employers Need to Know

As we have previously reported, an early focus of the second Trump administration has been to oppose and dismantle Diversity, Equity, and Inclusion (DEI) initiatives, both in the federal government and in the private sector,...more

GeoDataVision

Trump’s EO Regarding Disparate Impact: An Opportunity to Examine the REMA Concept

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President Trump signed Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy on April 23, 2025”. The EO proclaims a policy goal of eliminating “the use of disparate-impact liability in all contexts to the...more

Fisher Phillips

Discrimination Lawsuit Over Workday’s AI Hiring Tools Can Proceed as Class Action: 6 Things Employers Should Do After Latest Court...

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A federal judge just allowed a job applicant’s lawsuit against Workday to move forward as a nationwide class action, ruling that the company’s AI-powered hiring tools may have had a discriminatory impact on applicants over...more

Epstein Becker & Green

New Executive Order Targets Disparate Impact Claims Nationwide - #WorkforceWednesday® - Employment Law This Week®

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This week, we explore how key changes introduced by President Trump’s Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy” (“EO 14281”), raise important questions for employers navigating compliance with...more

Constangy, Brooks, Smith & Prophete, LLP

Filing window for 2024 EEO-1 Reports now open

Window closes June 24 – and don’t expect an extension.   The Equal Employment Opportunity Commission announced the opening of the 2024 EEO-1 Component 1 data collection. Covered employers have until June 24, 2025, to submit...more

Potomac Law Group, PLLC

Disparate Impact Under Fire: What EO 14281 Means for Equal Opportunity

Since the 1970s, federal civil rights statutes—and many state analogues—have imposed liability for ‘disparate impact’: when facially neutral policies disproportionately harm protected groups. Liability can attach even without...more

Venable LLP

New Trump Executive Order Dismantles Disparate Impact Liability

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On April 23, President Trump issued an executive order, "Restoring Equality of Opportunity and Meritocracy" (EO), intending to abolish a longstanding liability theory for workplace discrimination claims. Emphasizing the need...more

Whiteford

Employment Law Update: May 15 Disparate Impact Executive Order

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An Executive Order signed on April 23, 2025, promises to significantly limit federal enforcement tools in pursuing systemic discrimination claims. The Executive Order, titled “Restoring Equality in Opportunity and...more

Keating Muething & Klekamp PLL

More on Equal Opportunity: Executive Order Seeks to End Disparate Impact Liability to promote Equal Opportunity

On April 23, 2025, President Trump issued an Executive Order entitled “Restoring Equality of Opportunity and Meritocracy,” directing federal agencies to effectively end the use of “disparate impact” liability in enforcing...more

Amundsen Davis LLC

What Trump’s Order on Disparate-Impact Liability Means for Banks and Financial Institutions

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On April 23, 2025, President Donald J. Trump signed an executive order titled “Restoring Equality of Opportunity and Meritocracy.” This order states that the U.S. aims to limit the use of disparate-impact liability in order...more

Epstein Becker & Green

Disparate Impact Liability Under Fire

Epstein Becker & Green on

On Wednesday, April 23, 2025, President Trump signed EO 14281, titled Restoring Equality of Opportunity and Meritocracy (EO), stating a new Trump Administration policy “to eliminate the use of disparate-impact liability in...more

DCI Consulting

District Court Ruling Reinforces Justification for Employers to Collect Demographic Data

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Recently, there have been many questions regarding the collection of demographic data from employees and applicants by employers. Executive Order 14173 and other executive and agency actions by the Trump administration have...more

Husch Blackwell LLP

Trump Administration Moves to End Disparate Impact Liability

Husch Blackwell LLP on

On Wednesday, April 23rd, President Trump signed an Executive Order (EO) titled “Restoring Equality of Opportunity and Meritocracy,” which renounces disparate impact theories of discrimination, and signals a significant shift...more

Foley & Lardner LLP

Disparate-Impact Liability Gets Cancelled: Trump Executive Order Seeks to Eradicate Disparate-Impact Liability From Federal (And...

Foley & Lardner LLP on

On April 23, 2025, President Donald Trump issued an executive order titled “Restoring Equality of Opportunity and Meritocracy” (“the EO”). The EO, by its own terms, seeks to “to eliminate the use of disparate-impact...more

Harris Beach Murtha PLLC

Executive Order Barring Use of Disparate Impact Theory Affects EEOC Claims

On April 23, 2025, President Donald Trump issued an Executive Order (Order) titled, “Restoring Equality of Opportunity and Meritocracy,” which prohibits federal agencies, including the Equal Employment Opportunity Commission...more

GeoDataVision

The Impact of Trump’s Executive Order Regarding Disparate Impact

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Just when you thought the flurry of executive orders pertaining to “deregulation” might have slowed down, the President signed, on April 23, 2025, Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy.”...more

Eversheds Sutherland (US) LLP

Recent Executive Order on disparate impact: what it means for insurer’s use of AI

On April 23, 2025, President Donald Trump issued an Executive Order titled “Restoring Equality of Opportunity and Meritocracy” (order). The order declares disparate impact theory to be “wholly inconsistent with the...more

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