Yes. Automated hiring software can reject qualified applicants, and the U.S. Equal Employment Opportunity Commission (EEOC) documented one case in which it said an employer programmed software to screen applicants out based on age. That case shows a real risk—not that every hiring tool is biased, or that anyone has measured a general error rate across the market.
What the iTutorGroup case established
In a lawsuit announced on May 5, 2022, the EEOC said online tutoring company iTutorGroup programmed its application software in 2020 to reject female applicants aged 55 or older and male applicants aged 60 or older. The agency said more than 200 qualified applicants in the United States were rejected because of age. These were allegations in a filed lawsuit at the time of the announcement, not findings about every automated hiring system. EEOC’s 2022 lawsuit announcement
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On September 11, 2023, the EEOC announced that iTutorGroup would pay $365,000 and provide other relief to settle the suit. The agency described monitoring and injunctive measures in the settlement. EEOC’s settlement announcement
The documented mechanism was a programmed age cutoff in application software. The EEOC’s description does not establish that this particular system was generative AI or a sophisticated machine-learning model. It is important not to treat all resume screening, applicant ranking, skills assessments, and interview-analysis products as one technology: they can use different inputs and make different kinds of decisions.
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What the case does—and does not—say about AI hiring
The iTutorGroup case demonstrates that automated rules can screen out qualified people unlawfully. It does not show how often hiring tools do this across employers or vendors, nor establish the overall accuracy or bias rate of any specific product.
A February 17, 2024 Futurism report attributes a broader warning about the evidence to Hilke Schellmann, an NYU journalism professor and author. As reported by Futurism, Schellmann told the BBC there was little evidence that hiring tools are bias-free or reliably identify the most qualified candidates. That is an expert’s caution about the limits of evidence, not a measured estimate of how frequently applicants are wrongly rejected. Futurism’s report
The report also describes a makeup-artist assessment example attributed to BBC reporting; the details are not independently established here and should not be treated as a primary-source finding. There is no representative prevalence figure in the available evidence that can answer how many qualified applicants AI hiring systems reject overall.
Can employers use automated tools to screen applicants?
In the United States, federal employment discrimination laws apply to software and automated systems used in employment decisions. The EEOC’s technical assistance discusses assessing adverse impact in software, algorithms, and AI used in selection procedures under Title VII. Employers remain responsible for their selection practices even when technology carries them out. EEOC guidance on assessing adverse impact
That is a federal baseline, not a complete account of every state, local, or international rule. Specific requirements can vary by jurisdiction, so employers should check the rules that apply where they hire.
What job seekers can do
- Read the application instructions. Note whether the process includes an automated assessment, video interview, or other tool, and follow the stated requirements.
- Ask about accommodation if needed. If a disability may affect your ability to use or complete an assessment, contact the employer to ask about accommodation or an alternate assessment.
- Ask what happens next. You can ask whether a tool automatically rejects applications or merely prioritizes them, and whether there is a way to discuss an assessment result. The evidence here does not establish a universal right to human review or a guaranteed appeal route.
- Keep relevant records. Save the job posting, application confirmation, assessment instructions, and communications in case you need to explain what happened or raise a concern.
Questions employers should ask before relying on a hiring tool
EEOC guidance makes adverse impact a relevant consideration for selection procedures. In practice, employers evaluating a system can ask:
- What job-related criteria and input data drive the decision?
- Does the system automatically reject applicants, or only rank or prioritize them?
- How are outcomes assessed for adverse impact, and how often are they monitored?
- Can applicants request an accommodation or an alternate assessment?
- What records are retained so the employer can explain and monitor decisions?
These are practical evaluation questions, not a claim that every jurisdiction requires the same process. A vendor’s use of automation does not, by itself, transfer the employer’s responsibility for its selection practices.
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