iTutorGroup recruitment algorithmic age discrimination

China-based English-language tutoring company iTutorGroup used AI-powered software to reject older job applicants, resulting in job opportunity losses, litigation and a regulatory fine.

The US Equal Employment Opportunity Commission (EEOC), which enforces workplace bias laws, first alleged in 2020 that iTutorGroup had developed and was operating online recruitment software to screen out women aged 55 or older and men who were 60 or older. 

The software was programmed to exclude female applicants aged 55 and older and male applicants aged 60 and older, resulting in over 200 individuals being unfairly denied job opportunities. 

The EEOC also found that one applicant was rejected when using her actual birth date but was offered an interview when she reapplied with a younger birth date.

The case, which emphasised the need for accountability and transparency in automated recruitment systems, marked the first significant legal action against AI-driven hiring practices in the US.

iTutorGroup denied wrongdoing and agreed to pay USD 365,000 to the job applicants.

In 2021, the EEOC launched an initiative to ensure that AI software used by US employers complies with anti-discrimination laws. The iTutorGroup lawsuit was the first by the EEOC under the initiative.