The Impact of Artificial Intelligence on Employment Law in New Jersey

Artificial intelligence (AI) is transforming workplaces across the country. Did you know that 37% of companies now use AI in hiring processes? From screening resumes to tracking employee productivity, AI offers benefits like efficiency and cost savings. However, its use also raises critical issues, including discrimination, privacy violations, and job displacement.

For employees in New Jersey, these challenges can directly impact their rights. If AI is being misused in your workplace—whether it’s bias in hiring, invasive monitoring, or unfair treatment—you don’t have to navigate this alone. At Swartz Swidler LLC, we specialize in protecting employees from unfair practices, including those involving AI.

AI in the Workplace: Benefits vs. Risks

Feature	Benefits	Risks
Efficiency	Streamlines hiring and performance evaluations.	May overlook qualified candidates due to bias.
Cost Savings	Reduces administrative and labor costs.	Could lead to job displacement.
Data Insights	Offers objective metrics for decision-making.	Relies on potentially biased historical data.
Monitoring	Improves productivity tracking.	Invades employee privacy if overused.
Automation	Replaces repetitive tasks with AI processes.	Raises ethical concerns about workforce transitions.

 

1. How AI is Changing the Workplace

AI is revolutionizing the way businesses operate, particularly in the workplace. Here are some common applications:

• Hiring and Recruitment: AI tools screen resumes, rank candidates, and analyze video interviews for potential hires.
• Employee Monitoring: AI tracks productivity through tools that analyze emails, keystrokes, or behavior patterns.
• Performance Management: AI evaluates employee performance and even influences promotion or termination decisions.

Benefits of AI in Employment:

• Efficiency: Hiring and evaluation processes are faster and more streamlined.
• Cost Savings: Companies save on administrative costs and labor hours.
• Objective Data: AI provides data-driven metrics that can support decision-making.

However, these benefits come with risks. When not used responsibly, AI can lead to bias, privacy breaches, and unintended consequences for employees.

2. Challenges and Risks of AI in Employment

Bias and Discrimination

AI systems often rely on historical data, which may reflect existing biases. For example:

• A major company’s AI recruiting tool was found to favor male candidates for technical roles due to historical hiring trends.
• Resume screening tools have excluded candidates from underrepresented groups based on flawed algorithms.

These biases can perpetuate discriminatory practices, even if unintentional.

Privacy Concerns

AI-powered monitoring tools can overstep boundaries, collecting excessive or irrelevant data about employees. Examples include:

• Tracking keystrokes or screen time without notifying employees.
• Monitoring emails or online behavior unrelated to job performance.

Privacy violations erode trust and can infringe on workers’ rights.

Job Displacement

Automation through AI is replacing roles traditionally performed by humans. This shift raises ethical and legal concerns about how displaced employees are compensated and supported.

3. Legal Protections for Employees in New Jersey

Employees in New Jersey are protected from AI-related risks under state and federal laws.

New Jersey Law Against Discrimination (NJLAD)

• Prohibits discrimination based on race, gender, age, disability, and other protected traits.
• Covers AI-driven decisions that disproportionately harm specific groups.

Workplace Privacy Laws

• Employers must notify employees about monitoring practices and explain how data is collected and used.
• Workers can challenge surveillance that is excessive or unreasonable.

Federal Protections

• The EEOC has issued guidance emphasizing fairness in AI-driven hiring and evaluations.
• Federal anti-discrimination laws, such as Title VII of the Civil Rights Act, apply to AI practices just as they do to human-led decisions.

4. How Employers Can Use AI Responsibly

Employers can mitigate the risks of AI misuse by implementing best practices that comply with employment laws:

1. Conduct Regular Audits: Evaluate AI systems for bias and discriminatory patterns.
2. Be Transparent: Inform employees about how AI tools are being used and what data is being collected.
3. Train HR Teams: Ensure HR professionals understand AI’s limitations and how to address potential risks.
4. Consult Legal Experts: Regularly review AI tools and policies with legal professionals to ensure compliance with NJLAD and federal laws.

5. Protecting Your Rights as an Employee

Know Your Rights:

• Non-Discrimination: AI systems must comply with NJLAD and federal anti-discrimination laws.
• Privacy: Employers must disclose monitoring practices and the purpose of data collection.
• Transparency: You have the right to understand how AI is used in hiring, monitoring, or performance evaluations.

Steps to Take If Your Rights Are Violated:

1. Document the Issue: Save emails, screenshots, or records that show evidence of AI-driven bias or excessive monitoring.
2. File a Complaint: Report concerns to the New Jersey Division on Civil Rights (NJDCR) or the EEOC.
3. Seek Legal Help: An employment attorney can help you navigate the complexities of AI-driven violations and secure your rights.

6. The Future of AI in Employment Law

AI will continue to play a growing role in the workplace, but its legal landscape is also evolving. Here are some trends to watch:

• Legislation on AI Bias: Proposed laws may require companies to regularly evaluate AI tools for fairness.
• Portable Benefits: Discussions are underway about providing displaced workers with benefits that transition with them.
• Accountability Frameworks: Employers may soon need to validate AI tools’ compliance with anti-discrimination laws before use.

Staying informed about these changes is essential for both employees and employers to adapt to the evolving workplace.

7. How Swartz Swidler LLC Can Help

At Swartz Swidler LLC, we’re at the forefront of addressing AI-related legal issues in the workplace. We can help you with:

• Discrimination Claims: Challenging AI-driven hiring, firing, or promotion decisions that unfairly target protected groups.
• Privacy Violations: Addressing unreasonable or undisclosed monitoring practices.
• Workplace Displacement: Advocating for employees whose jobs are threatened by automation.

Our team stays ahead of emerging trends in AI and employment law to provide the strongest possible support for our clients in New Jersey.

Conclusion

Artificial intelligence is reshaping workplaces, offering both opportunities and challenges. While AI can improve efficiency, it must be implemented responsibly to protect employees’ rights. If you’ve experienced discrimination, privacy violations, or job displacement due to AI practices, you don’t have to face it alone.

Contact Swartz Swidler LLC today for a free consultation. Together, we’ll ensure your rights are protected in the rapidly changing world of AI.

 

FAQs

Your Questions Answered: AI and Employment Law in New Jersey

• Q1: Can AI tools discriminate in hiring?

  • A: Yes. AI systems can unintentionally embed biases from historical data, leading to discriminatory outcomes. For example, an AI hiring tool might favor certain genders or backgrounds based on past hiring patterns.

• Q2: Are employers required to disclose AI monitoring practices?

  • A: Yes. Under New Jersey privacy laws, employers must notify employees about monitoring practices and how data will be used. Failure to disclose could violate workplace privacy laws.

• Q3: What should I do if I suspect AI-driven discrimination?

  • A: Document incidents, save evidence (like emails or hiring decisions), and contact an attorney to assess your case. You can also file complaints with the NJDCR or EEOC.

• Q4: How does the NJLAD protect against AI misuse?

  • A: The NJLAD prohibits discrimination in hiring, promotions, and other employment decisions, even if the discrimination arises from AI tools. Employers are responsible for ensuring their AI systems comply with these laws.

• Q5: Will AI take my job?

  • A: While AI is automating some roles, laws and proposed policies are emerging to protect displaced workers. Portable benefits and training programs may help employees transition to new opportunities.

Statistics

Key Facts About AI and Employment Law

• 37% of companies use AI in hiring processes, including resume screening and video interview analysis.
• 40% of employees believe AI monitoring invades their privacy.
• In a recent study, 25% of AI hiring tools were found to reflect gender or racial bias.
• 70% of employees are unaware of how their data is collected or used in AI systems.
• The EEOC recovered over $300 million for workplace discrimination cases in 2023, some of which involved AI-driven practices.

Resources

Essential Resources for Understanding AI in the Workplace

• New Jersey Division on Civil Rights (NJDCR): Learn more about NJLAD protections
• Equal Employment Opportunity Commission (EEOC): File a federal discrimination complaint
• Swartz Swidler LLC: Contact us for legal assistance with AI-related workplace issues
• AI Now Institute: Explore research on AI ethics and bias
• National Conference of State Legislatures (NCSL): Track legislation on AI and employment