Expert Compliance Insights & Tips for Businesses

On October 24, the Consumer Financial Protection Bureau (CFPB) released information on workplace tracking technology under the Fair Credit Reporting Act (FCRA). Such technology could include the use of artificial intelligence (AI). Markedly, the CFPB has the primary regulatory and interpretive role regarding the FCRA. The agency also shares the enforcement role with the Federal Trade Commission (FTC). Overall, according to Littler, the circular explains if employers must comply with the FCRA’s employment-related provisions before using such technology. Earlier, the CFPB joined other federal departments and agencies by releasing artificial intelligence (AI) guidance. Specifically, the guidance calls for “fairness, equality, justice[,] and compliance as automated systems [like AI] become more commonly used.”

On October 21, the Equal Employment Opportunity Commission (EEOC) announced that an Atlanta, Georgia-based company will pay $3.1 million to settle a sex discrimination lawsuit. The company is a leading provider of solid waste removal, recycling pickup, and landfill operation services. Notably, the settlement amount and additional injunctive relief settle a pattern-or-practice sex discrimination lawsuit. Employers must not discriminate against federally protected classes, which include race, sex, age, disability, and pregnancy status. Comparatively, the EEOC has ramped up its enforcement efforts in recent years. In August 2024, the agency announced that a staffing support firm will pay $1.25 million to settle a disability-related discrimination case.

On October 15, the Department of Labor’s (DOL’s) Solicitor of Labor released a Special Enforcement Report on workplace contract provisions. Specifically, U.S. Solicitor of Labor Seema Nanda’s report announced that the agency would target seven specific employment-related contract provisions. Chiefly, she believes these provisions are “coercive” and could discourage workers from exercising their rights under federal workplace laws. Earlier this month, the DOL launched a new tool to assist employers in creating reasonable accommodations.

On October 9th, 2024, the Equal Employment Opportunity Commission (EEOC) announced that it filed 110 unlawful employment discrimination lawsuits. Specifically, those lawsuits were filed in fiscal year (FY) 2024 and placed an emphasis on emerging issues. The agency also filed these lawsuits to advance the employment rights of underserved and vulnerable workers. Earlier, in September 2024, the EEOC announced that a Florida-based company would pay $1.6 million to settle a racial harassment case. Additionally, that lawsuit also included charges of national origin harassment and retaliation.

On September 30, the Department of Labor (DOL) announced a new tool to assist employers in creating reasonable accommodations. Overall, the resource provides more than 700 ideas for accommodations for workers with disabilities and their employers. Previously, in September, the agency released a framework on inclusive artificial intelligence hiring and recruitment requirements.

On September 24, the U.S. Department of Labor (DOL) announced the publication of new AI hiring and recruitment requirements. Specifically called “AI & Inclusive Hiring Framework,” this new tool was designed to support the inclusive use of artificial intelligence (AI) in employers’ hiring technology. Additionally, the DOL believes the new resource will increase benefits for disabled job seekers. It is important to note that employers must not discriminate against federally protected classes, which include race, sex, age, disability, and pregnancy status. This includes whether or not the employer utilizes AI hiring and recruitment. Comparatively, the EEOC has ramped up its enforcement efforts in recent years. Previously, in April 2024, the DOL joined other federal departments and agencies by releasing AI guidance. Chiefly, the DOL’s release called for “fairness, equality, justice[,] and compliance as automated systems [like AI] become more commonly used.”

As employers and managers conduct job interviews, they may not be aware of the specific types of illegal interview questions. Federal anti-discrimination laws like Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act of 1990 (ADA), and the Age Discrimination in Employment Act of 1967 (ADEA) prevent such illegal interview questions. In addition, state and local laws prohibit discrimination based on certain protected categories. These categories can include marital status, arrest and conviction records, military discharge status, or pregnancy status. Violating state and federal laws through discriminatory screening tactics or asking illegal interview questions can be costly for businesses. Violations vary on the size of the employer and can result in fines ranging from $50,000 to $300,000 per person in an employment discrimination lawsuit.

The Department of Labor (DOL) recently announced that a restaurant owner could be fined $1.87 million for wage & hour violations, including overtime damages. Generally, on September 18th, 2024, the federal agency filed suit for minimum wage and overtime regulations. Specifically, the DOL’s Wage and Hour Division (WHD) found servers worked for tips only. Meanwhile, cooks were paid a set cash salary regardless of how many hours they worked. Previously, in August, the DOL announced that a Pennsylvania restaurant owner would be fined $1.3 million for wage & hour violations.

On September 9th, 2024, three federal agencies issued final rules on substance use disorder care and mental health benefits. The Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury hope these rules clarify and strengthen protections to expand equitable access to these benefits. Chiefly, the release of the new final rules is part of the Biden-Harris administration’s effort to ensure more than 150 million people with private health coverage have greater access to mental health and substance use disorder care. Previously, the DOL’s Employee Benefits Security Administration (EBSA) announced updated benefit plan cybersecurity guidance to protect assets.

On August 27, the U.S. Equal Employment Opportunity Commission (EEOC) announced that a Sorrento, Florida-based company will pay $1.6 million to settle a racial harassment case. Additionally, the lawsuit also included charges of national origin harassment and retaliation. Notably, the lawsuit was brought on behalf of 17 former Black and Hispanic employees. Employers, however, must not discriminate against federally protected classes, which include race, sex, age, disability, and pregnancy status. Comparatively, the EEOC has ramped up its enforcement efforts in recent years. In August 2024, the agency announced that a staffing support firm will pay $1.25 million to settle a disability-related discrimination case.