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One to Keep An Eye On: Algorithmic Accountability Act


As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


Earlier this month, the Algorithmic Accountability Act ("Act") was introduced in Congress which seeks to require companies to study and fix flawed computer algorithms that produce inaccurate, unfair, biased, or discriminatory decisions.  Specifically, this bill would charge the Federal Trade Commission ("FTC") with creating regulations that require companies under its jurisdiction to conduct impact assessments of highly sensitive automated decision systems, require companies to assess their use of automated systems, require companies to evaluate how their information systems protect the privacy and security of consumers' personal information, and require companies to correct any issues they discovery during the impact assessments.

It is important to note that this bill would only apply to companies that are actually regulated by the FTC and that make more than $50 million/year.  As a result, many small(er) businesses would be exempt from the reach of the Act.

While the Act goes beyond the scope of just employer/employee matters, it is noteworthy in so much because some employers have used algorithms to help sort applicants for open positions.  With some reports coming out that some algorithms have been found to be improperly excluding minority applicants, this legislation is somewhat timely.  As well, one Democratic candidate for President, New Jersey Senator Cory Booker, is one of three Congressmen that has introduced the Act which should help make this a more newsworthy topic.  Whether this legislation has the legs to make it through Committee and both the House of Representatives and the Senate remains to be seen.


For additional information:  https://www.wyden.senate.gov/news/press-releases/wyden-booker-clarke-introduce-bill-requiring-companies-to-target-bias-in-corporate-algorithms-

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