Mandatory independent bias audit protocols and statutory employment agency liability for third-party AI software screening job applicants on video, voice, and resume models.
↳ Statutory Hook: NYC Local Law 144 & Title VII (42 U.S.C. § 2000e-2)Unanimous SCOTUS decision establishing the disparate impact doctrine governing employment selection tests and algorithms.
Facially neutral employment tests that produce a disparate adverse impact violate Title VII unless validated as strictly job-related and consistent with business necessity.
Mandates empirical bias auditing and adverse impact ratio testing on all predictive candidate scoring algorithms.
Binding SCOTUS Bedrock (8-0 Unanimous)
“Title VII prohibits not only intentional discrimination, but also employment practices that are facially neutral in their treatment of different groups but that in fact fall more harshly on one group than another and cannot be justified by business necessity. Chief Justice Burger established the landmark 'Disparate Impact Doctrine'.”
Duke Power Company instituted a requirement that applicants for higher-paying operating departments possess a high school diploma and pass two standardized aptitude tests (the Wonderlic Personnel Test and the Bennett Mechanical Comprehension Test). Neither requirement was shown to measure the ability to perform the jobs in question. Because of legacy racial segregation in education, Black applicants were disqualified at substantially higher rates than white applicants.
On writ of certiorari to the United States Court of Appeals for the Fourth Circuit, which had held that Title VII of the Civil Rights Act of 1964 required proof of subjective discriminatory intent.
Issue: Whether Title VII of the Civil Rights Act of 1964 prohibits an employer from requiring a high school education or standardized general aptitude test as a condition of employment when neither standard is shown to be job-related, even in the absence of discriminatory intent.
Griggs is the constitutional and statutory foundation for all modern anti-discrimination jurisprudence concerning automated employment decision tools (AEDTs), resume filtering algorithms, and predictive hiring bots. It establishes that algorithmic neutral scoring that causes statistically significant adverse impact violates Title VII unless the developer/employer proves strict empirical job-related validation.
Griggs v. Duke Power Co., 401 U.S. 424 (1971).