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ESWhat applies

United States (federal) · Law

Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA)

In forceTitle VII and ADA

Summary

Federal employment discrimination laws apply in the same way when hiring or evaluation is done with AI. In January 2025 the EEOC withdrew its AI guidance and the federal government has scaled back disparate-impact enforcement, but the statutes did not change and candidates can still sue. The employer is responsible even when the tool comes from a vendor.

Who it applies to

Employers with 15 or more employees that use AI to hire, evaluate, promote or terminate staff in the US.

Penalties

Back pay, compensatory and punitive damages capped at $50,000 to $300,000 depending on employer size; class actions.

Official name
Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.); Americans with Disabilities Act, Title I (42 U.S.C. § 12111 et seq.)
Official reference
42 U.S.C. § 2000e-2(k) (impacto dispar); 29 CFR Part 1607 (UGESP); 42 U.S.C. § 12112
Regulator
Equal Employment Opportunity Commission (EEOC) and courts
Official source
Check the sourceHow we verify sources

Key dates

Obligations and dates

Obligations table
ObligationArticle or citationStatusDateWho it applies toVerification
Monitor AI selection tools for adverse impact42 U.S.C. § 2000e-2(k); 29 CFR 1607.4(D) (regla de los cuatro quintos)In forceAlready applicableApplies to employers with 15 or more employees that use AI in employment decisions. The "10 to 49" band includes companies below the threshold: check your headcount.Pending confirmation in the official source (last checked: November 4, 2026)
Offer reasonable accommodation and an alternative to AI assessment42 U.S.C. § 12112(b)(5)-(7)In forceAlready applicableApplies to employers with 15 or more employees that assess candidates with AI (tests, video interviews, games).Pending confirmation in the official source (last checked: November 4, 2026)

Monitor AI selection tools for adverse impact

42 U.S.C. § 2000e-2(k); 29 CFR 1607.4(D) (regla de los cuatro quintos)In force

Already applicable

When it relates
Applies to employers with 15 or more employees that use AI in employment decisions. The "10 to 49" band includes companies below the threshold: check your headcount.
What the rule provides
  • Measure selection rates by sex, race and ethnicity before use and periodically.
  • If there is adverse impact, document job-relatedness and look for less discriminatory alternatives.
  • Require validation and bias-test data from the vendor.
  • Keep selection records for at least one year (29 CFR 1602.14).
Typical evidence
  • Adverse impact report per tool
  • Vendor contract and validation documentation
Verification
Pending confirmation in the official source (last checked: November 4, 2026)Checked in official sources: 42 U.S.C. § 2000e-2(k) (govinfo), 29 CFR 1607.4(D) (four-fifths rule) and 29 CFR 1602.14 (record retention) (eCFR). Not officially sourced: the EEOC's withdrawal of its AI guidance in January 2025 and the shift in enforcement priorities; the law did not change. The impact report is the recommended way to document a defense, not a legal requirement.

Offer reasonable accommodation and an alternative to AI assessment

42 U.S.C. § 12112(b)(5)-(7)In force

Already applicable

When it relates
Applies to employers with 15 or more employees that assess candidates with AI (tests, video interviews, games).
What the rule provides
  • Tell candidates how they are assessed and how to request an accommodation.
  • Offer an alternative assessment or human review where the tool may disadvantage people with disabilities.
  • Do not use tools that ask prohibited medical questions.
Typical evidence
  • Candidate notice with accommodation channel
  • Log of accommodation requests and responses
Verification
Pending confirmation in the official source (last checked: November 4, 2026)Checked on govinfo: 42 U.S.C. § 12112(b)(5)-(7) (reasonable accommodation, criteria that screen out people with disabilities and test administration). The ADA requires reasonable accommodation, not a specific written policy: the policy is the recommended way to document it. The EEOC's withdrawal of its AI guidance comes from secondary sources.

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