This week, consumer advocate lawyers filed a nationwide class action lawsuit against a California-based tech company, Eightfold AI, in California state court. The two named plaintiffs and the proposed class allege Eightfold violated the Fair Credit Reporting Act (“FCRA”) by not giving job applicants notice of the use of AI in the application process nor giving them a chance to dispute any errors.
This lawsuit has potentially far reaching impact on any employer that uses AIto screen and rank applicants—not just Eightfold.