Disparate impact: Under nondiscrimination law, which theory of liability is most directly implicated?
A neutral tool that yields significantly unequal outcomes across a protected group implicates disparate-impact liability.
The question
An employer's AI resume-screening tool uses no protected attributes as inputs, yet it advances candidates of one gender at a substantially higher rate than another. Under nondiscrimination law, which theory of liability is most directly implicated?
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- Disparate impact, where a facially neutral practice produces a significantly unequal outcome across groups ✓Correct: neutral inputs but unequal outcomes across a protected group is the classic disparate-impact pattern.
- Disparate treatment, where an employer intentionally treats an individual worse because of a protected traitPlausible, but disparate treatment requires intentional use of a protected trait, absent from a neutral tool.
- Breach of contract, where an employer fails to honor a term agreed with the affected job candidateUnrelated to discrimination law; a screening outcome does not create a contractual breach of this kind.
- Retaliation, where an employer penalizes a worker for asserting a protected right or filing a complaintRetaliation needs a protected activity being punished, which the screening scenario does not describe.
The trap
Assuming discrimination requires intent, so that a 'neutral' model cannot create liability. How to remember it
A neutral tool that yields significantly unequal outcomes across a protected group implicates disparate-impact liability.
How many of these would you get right?
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Every answer, right and wrong, comes with its own explanation.