It is now common for companies to increasingly rely on Artificial Intelligence to automate hiring decisions. However, algorithms are only as unbiased as the data used to train them. If an AI is trained on historical data from periods of discriminatory hiring, the tool may “learn” to illegally exclude qualified candidates based on protected characteristics.
The impact of the Kentucky Consumer Data Protection Act (KCDA)
The legal landscape in Kentucky changed this year with the full implementation of the KCDA. This legislation specifically targets “profiling,” which is the automated processing of personal data to evaluate a person’s work performance, reliability, or location.
- The right to opt-out: You possess the legal right to opt out of automated decision-making that produces “legal or similarly significant effects,” such as job denials.
- Mandatory transparency: Companies must disclose the use of your data for profiling and provide a clear mechanism for you to exercise your privacy rights.
- Civil Rights reinforcement: The Act explicitly states that automated tools cannot be used to bypass existing workplace anti-discrimination protections.
Under this new framework, the burden of transparency has shifted to the employer. If a company fails to provide these disclosures, they may face significant enforcement actions from the Kentucky Attorney General.
Identifying algorithmic discrimination in the digital age
Algorithmic bias is often invisible to the applicant, hidden behind proprietary code. However, certain “red flags” may indicate that a digital tool is unfairly filtering your application:
- Proxy discrimination: An AI may use “proxies” such as zip codes to indirectly filter out specific demographics or protected groups.
- Systemic disqualification: Being repeatedly rejected for roles for which you are overqualified may suggest an underlying algorithmic error.
- Lack of disclosure: If an employer utilizes a “video interview AI” without providing an opt-out, they are likely in violation of the KCDA.
The EEOC has issued strict guidelines warning that such algorithmic bias represents a direct threat to civil rights, potentially violating Title VII if the tools produce a disparate impact.
Protecting your professional future
If you suspect your data was used unlawfully during a hiring process, consulting with a legal professional can help you navigate the complexities of the KCDA and ensure your rights are upheld in this new digital era.