Introduction
On October 16, 2024 [1] [4] [5] [6] [7], the US Department of Labor (DOL) released guidance titled “Artificial Intelligence and Worker Well-Being: Principles and Best Practices for Developers and Employers.” This document builds on previous DOL AI guidance and aligns with President Biden’s 2023 Executive Order on AI [1]. It emphasizes the responsible integration of AI technologies in the workplace, outlining eight core principles aimed at protecting workers’ rights, promoting transparency [6], and ensuring equitable outcomes as AI reshapes the labor landscape [6].
Description
Central to the DOL’s guidance are principles that include protecting labor and employment rights, promoting equity and inclusion [6], ensuring data privacy and security [6], and supporting worker well-being. Employers are encouraged to design AI systems that foster diversity and inclusivity while conducting regular audits to prevent bias. A key recommendation is to empower workers, particularly those from underserved communities [3] [4], ensuring they are informed about AI’s impact on their roles and have meaningful input in the design and oversight of AI systems. This collaborative approach aims to balance the advantages of AI with worker protection [7] [8], thereby improving job quality and supporting business success [8].
To enhance worker empowerment [7] [8], employers should incorporate worker input throughout the AI lifecycle [8], from design to deployment [1]. They are advised to conduct impact assessments and independent audits of AI programs [1] [8], documenting any negative effects on job quality and well-being while assessing risks related to algorithmic discrimination. Continuous monitoring of AI systems is crucial, with a strong emphasis on human oversight in employment decisions. Jobs created for reviewing AI should adhere to labor standards [7], and governance structures should facilitate worker feedback in decision-making processes.
Training on AI systems should be provided to a diverse range of employees [8], focusing on upskilling rather than replacement [1] [7], and including processes for raising concerns [8]. Employers must avoid relying solely on AI for significant employment decisions [8], ensuring that such decisions are documented and that workers receive advance notice and transparency regarding AI system usage, including data collection practices [1] [3] [8]. Employees should have the opportunity to access [7] [8], dispute [7] [8], and correct their data without fear of retaliation [1] [7] [8].
AI tools should not be used to reduce wages [1] [8], break times [7] [8], or benefits [1] [7] [8], and regular audits should be conducted to assess disparate impacts on individuals with protected characteristics [8], with reasonable accommodations offered when necessary [8]. Employers are encouraged to pilot AI tools before broader implementation and to avoid invasive monitoring of employees, particularly for performance assessments [8]. The guidance emphasizes the importance of preserving jobs at risk of displacement by providing training and professional development opportunities [8].
The DOL guidance outlines the necessity of applying these principles throughout the entire lifecycle of AI [8]. Data collected by AI systems should be limited to legitimate business purposes and handled responsibly [3] [4], with safeguards developed to protect employee data from privacy threats [8]. Employers implementing or considering AI systems must review the DOL AI Guidance to ensure alignment with the stated purposes and policies [2]. Additionally, they should remain vigilant about the requirements of other federal agencies [2], such as the EEOC and OFCCP [2], as well as relevant state laws [2], to ensure compliance with all legal obligations [1] [2]. Legal professionals specializing in labor [2], employment [1] [2] [3] [4] [5] [6] [7] [8], and workplace safety can provide guidance on the implications of AI developments and help clients navigate the evolving legal landscape surrounding AI in the workplace [2].
The DOL also raises concerns about the legality of using background dossiers and algorithmic scores for employment decisions without compliance with the Fair Credit Reporting Act (FCRA) [3], indicating that such reports may qualify as “consumer reports.” Employers must assess whether the data is used for “employment purposes” as defined by the FCRA and ensure that reports are obtained from compliant consumer reporting agencies. While the outlined practices are not exhaustive or binding [2] [7], they provide a framework for employers to refine their use of AI in employment decisions [1] [8], ensuring compliance with federal and state regulations [7] [8]. By adhering to these principles [6], employers can foster innovation and growth while ensuring transparency and accountability in AI integration [6].
Conclusion
The DOL’s guidance on AI in the workplace underscores the importance of balancing technological advancement with the protection of workers’ rights. By adhering to the outlined principles, employers can ensure that AI integration is both responsible and equitable, fostering innovation while maintaining transparency and accountability [6]. This approach not only supports business success but also enhances job quality and worker well-being, ultimately contributing to a more inclusive and fair labor market.
References
[1] https://www.klgates.com/The-DOL-Publishes-Best-Practices-That-Employers-Can-Follow-to-Decrease-the-Legal-Risks-Associated-With-Using-AI-in-Employment-Decisions
[2] https://futures.webershandwick.com/2024/12/26/dols-ai-hiring-framework-provides-employers-with-helpful-guidance-on-how-to-decrease-the-legal-risks-associated-with-using-ai-in-employment-decisions/
[3] https://www.manatt.com/insights/newsletters/employment-law/dol,-cfpb-issue-guidance-for-employers-on-ai
[4] https://hrdailyadvisor.blr.com/2024/12/17/dol-issues-ai-guidance/
[5] https://b2bdaily.com/hrtech/dol-releases-guidelines-for-ethical-ai-use-and-worker-well-being/
[6] https://www.linkedin.com/pulse/us-department-labor-introduces-new-ai-comprehensive-grossenbacher-pzgec
[7] https://natlawreview.com/article/dols-ai-hiring-framework-provides-employers-helpful-guidance-how-decrease-legal
[8] https://www.jdsupra.com/legalnews/the-dol-publishes-best-practices-that-5389552/
