AI and Employment Actions

Posted by BAS - 06 June, 2024

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The Department of Labor (DOL) issued Field Assistance Bulletin (FAB) 2024-1, providing guidelines on the use of artificial intelligence (AI) in administering the Fair Labor Standard Act (FLSA) and the Family and Medical Leave Act (FMLA).

The FMLA allows eligible employees up to 12 weeks of unpaid leave for certain approved family and medical reasons, including personal health conditions, family care, and childbirth, and military-related items. Additionally, it grants up to 26 weeks for caring for a spouse with a military service-related illness or injury. The FMLA protects employees by prohibiting employer interference in exercising FMLA rights.

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the federal, state, and local governments, as well as in the private sector. The act ensures that employees who work more than 40 hours a week receive at least one and a half times their regular pay rate for overtime hours. It also restricts the employment and abuse of child workers, setting minimum age requirements and work hours for minors.

FAB 2024-1 addresses concerns that AI, without proper human oversight, may lead to employers violating FLSA and FMLA rules.

AI is defined by the DOL in the bulletin as systems capable of making decisions or recommendations based on both machine and human inputs. AI systems are designed to perceive environments, abstract these perceptions into models automatically, and use these models to suggest actions or information.

FAB 2024-1 points out the potential problems with using AI in FLSA and FMLA administration. Using AI could violate the FMLA if employees are asked for too much medical information or if AI doesn’t handle FMLA certification requirements correctly. It could violate the FLSA if AI is used to determine if an employee is working by monitoring computer use, mouse clicks, or keystrokes.

Employers must ensure that AI systems do not negatively impact employment actions or incorrectly administer applicable employment laws. The DOL warns that misuse of AI could lead to widespread non-compliance and potential legal violations. Employers are ultimately responsible for ensuring their technology complies with all legal requirements, emphasizing the need for careful oversight of any automated AI systems used in administration of applicable employment laws.


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Topics: HR & Benefits Compliance, HR & Benefit Plans, HR & Benefits, HR & Benefits News


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