September 30, 2025
The U.S. civil rights agency responsible for enforcing worker rights will stop investigating complaints about company policies that don’t explicitly discriminate but may disproportionately harm certain groups, according to an internal memo obtained by The Associated Press.
The memo, emailed to all area, local and district office directors of the U.S. Equal Employment Opportunity Commission on Sept. 15, says that the agency will discharge by Tuesday any complaints based on “disparate impact liability,” a legal concept that argues that even if a policy looks fair on the surface, it can still be discriminatory if it creates unnecessary barriers that make it harder for certain groups of people to succeed.
The move marks a significant shift in EEOC enforcement, and critics say it weakens an effective legal tool used to root out workplace discrimination. That’s especially true when it comes to addressing algorithmic bias as more employers rely on AI in the hiring process.
Since AI draws on large amounts of data to generate results, it can replicate the patterns of inequality even if it’s not programmed to do so. In one infamous example, Amazon developed a resume-scanning tool to recruit top talent, but abandoned it after finding it favored men for technical roles — in part because it was comparing job candidates against the company’s own male-dominated tech workforce.
“As AI is becoming more and more popular, it’s particularly important that we have the disparate impact tools available to be able to police it and make sure it’s not being used to resegregate the workforce,” said civil rights and plaintiff-side employment attorney Christine Webber.
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Webber said the EEOC’s decision not to pursue these investigations “definitely erects an unnecessary hurdle” for workers who filed complaints, and now no longer get the benefit of a publicly-funded investigation, which can be difficult and costly. Unlike private lawyers, the EEOC has the ability to compel employers to provide information early in the process.
Read Civil Rights Agency Drops a Key Tool Used to Investigate Workplace Discrimination.