Eightfold Faces Lawsuit for Allegedly Assisting Firms in Covert Job Seeker Scoring

Eightfold AI, a venture capital-backed artificial intelligence hiring platform utilized by major corporations like Microsoft and PayPal, is facing a lawsuit for allegedly compiling reports to screen job applicants without their consent. This legal action highlights growing concerns about the transparency and ethics of AI systems in hiring processes.

The lawsuit, filed in California on Tuesday, accuses Eightfold of violating the Fair Credit Reporting Act (FCRA). This case underscores the efforts of consumer advocates to apply existing laws to AI technologies that analyze extensive data to make inferences about individuals.

Headquartered in Santa Clara, California, Eightfold offers tools designed to streamline the hiring process by evaluating job applicants and predicting their suitability for specific roles. This is achieved through the analysis of vast amounts of data sourced from online resumes and job listings. However, candidates applying for positions at companies using these tools often do not receive notifications or opportunities to dispute any inaccuracies, as alleged by job applicants Erin Kistler and Sruti Bhaumik in their proposed class action.

The plaintiffs argue that Eightfold’s practices violate the FCRA and a California law that grants consumers the right to access and contest credit reports used in hiring and lending decisions. “There is no AI-exemption to these laws, which have for decades been an essential tool in protecting job applicants from abuses by third parties—like background check companies—that profit by collecting information about and evaluating job applicants,” they stated in the lawsuit.

As of now, a spokesperson for Eightfold has not responded to requests for comment. The company is backed by notable venture capital firms, including SoftBank Vision Fund and General Catalyst.

Kistler and Bhaumik have initiated the lawsuit in California state court on behalf of all U.S. job seekers who have been evaluated using Eightfold’s tools. They are represented by the labor law firm Outten & Golden and the nonprofit advocacy group Towards Justice.

According to the lawsuit, Eightfold generates talent profiles for job seekers that include personality traits such as “team player” and “introvert,” assesses their “quality of education,” and predicts their future job titles and employers. Kistler applied for positions at various companies, including PayPal, while Bhaumik sought roles at firms like Microsoft. Both hold degrees in science or technology and possess over a decade of experience, yet neither was hired, leading them to believe that Eightfold’s tools influenced the hiring decisions.

It is important to note that Microsoft and PayPal are not defendants in this lawsuit. A spokesperson for Microsoft declined to comment, and a representative from PayPal has not yet responded to inquiries.

Approximately one-third of Eightfold’s clientele consists of Fortune 500 companies, including Salesforce and Bayer. Additionally, the New York State Department of Labor and the Colorado Department of Labor and Employment utilize Eightfold-powered platforms to assist job seekers.

Topics
Lawsuits
InsurTech
Data Driven
Artificial Intelligence
Talent

Eightfold AI, a venture capital-backed artificial intelligence hiring platform utilized by major corporations like Microsoft and PayPal, is facing a lawsuit for allegedly compiling reports to screen job applicants without their consent. This legal action highlights growing concerns about the transparency and ethics of AI systems in hiring processes.

The lawsuit, filed in California on Tuesday, accuses Eightfold of violating the Fair Credit Reporting Act (FCRA). This case underscores the efforts of consumer advocates to apply existing laws to AI technologies that analyze extensive data to make inferences about individuals.

Headquartered in Santa Clara, California, Eightfold offers tools designed to streamline the hiring process by evaluating job applicants and predicting their suitability for specific roles. This is achieved through the analysis of vast amounts of data sourced from online resumes and job listings. However, candidates applying for positions at companies using these tools often do not receive notifications or opportunities to dispute any inaccuracies, as alleged by job applicants Erin Kistler and Sruti Bhaumik in their proposed class action.

The plaintiffs argue that Eightfold’s practices violate the FCRA and a California law that grants consumers the right to access and contest credit reports used in hiring and lending decisions. “There is no AI-exemption to these laws, which have for decades been an essential tool in protecting job applicants from abuses by third parties—like background check companies—that profit by collecting information about and evaluating job applicants,” they stated in the lawsuit.

As of now, a spokesperson for Eightfold has not responded to requests for comment. The company is backed by notable venture capital firms, including SoftBank Vision Fund and General Catalyst.

Kistler and Bhaumik have initiated the lawsuit in California state court on behalf of all U.S. job seekers who have been evaluated using Eightfold’s tools. They are represented by the labor law firm Outten & Golden and the nonprofit advocacy group Towards Justice.

According to the lawsuit, Eightfold generates talent profiles for job seekers that include personality traits such as “team player” and “introvert,” assesses their “quality of education,” and predicts their future job titles and employers. Kistler applied for positions at various companies, including PayPal, while Bhaumik sought roles at firms like Microsoft. Both hold degrees in science or technology and possess over a decade of experience, yet neither was hired, leading them to believe that Eightfold’s tools influenced the hiring decisions.

It is important to note that Microsoft and PayPal are not defendants in this lawsuit. A spokesperson for Microsoft declined to comment, and a representative from PayPal has not yet responded to inquiries.

Approximately one-third of Eightfold’s clientele consists of Fortune 500 companies, including Salesforce and Bayer. Additionally, the New York State Department of Labor and the Colorado Department of Labor and Employment utilize Eightfold-powered platforms to assist job seekers.

Topics
Lawsuits
InsurTech
Data Driven
Artificial Intelligence
Talent