Groundbreaking Lawsuit Tests Whether AI Hiring Tools Trigger FCRA Compliance
Quick Hits A proposed class action alleges that a widely-used AI-powered tool violates the federal FCRA and California’s ICRAA by compiling sensitive, individualized personal information on job applicants without their consent. The complaint contends that by evaluating applicants based on extensive data sources—such as LinkedIn profiles, publications, and job application history—the tool generates consumer reports subject to the disclosure, authorization, notification, and certification requirements of both statutes. The lawsuit could…

