Is your company at risk?
Can you show that your company ...
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Does not discriminate based on race, sex, religion on national origin? (To comply with Title VII of the Civil Rights Act).
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Does not exclude or disadvantage disabled applicants? (To comply with the Americans with Disabilities Act).
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Do not favor younger candidates over those 40+ (To comply with the Age Discrimination in Employment Act)
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Ensures AI tools comply with discrimination laws? (EEOC Guidance).
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Conducts annual bias audits (If based in NYC, to comply with NYC Local Law 144).
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Explain automated decisions? (To comply with GDPR in EU and the UK).
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Has human oversight and risk controls in place for AI systems used in hiring? (To comply with the EU AI Act).
If your answer was "No" to any of the above then you are at risk of litigation, fines, and loss of trust from candidates. EquiScan is a solution to minimize the risk from all applicable laws and regulations.
The cost of non-compliance
The payout or fine for a company losing a disparate impact lawsuit can vary widely depending on the size of the company, scope of the violation, number of affected individuals, and whether the case is settled or goes to trial.
Individual Settlements
$50,000 - $300,000
Typical EEOC settlement caps per person under Title VII
Class Action or Systemic Disparate Impact
$1 million - $20+ million
Larger cases involving many affected individuals or pattern/practice claims
Consent Decrees or Compliance Settlements
$500,000 - $10 million
May include additional non-monetary remedies like hiring goals, audits, training
EEOC v. iTutorGroup (AI hiring age bias) - Aug 2023
Settlement: $365,000 to rejected older applicants (55+ women, 60+ men)
Non-Monetary Terms: Consent decree prohibiting age/sex discrimination; 5-year term; applicants from Mar–Apr 2020 invited to reapply.
Workday (AI hiring screening) - Ongoing (Class-action certified - May 2025)
Settlement: Still in litigation.
Court permitted nationwide age-discrimination suit; likely injunctive relief; no settlement yet.
Abercrombie & Fitch (Disparate impact) - 2004
Settlement: $40 million
Non-Monetary Terms: Diversity hiring goals and oversight.
Ford Motor Company (Disparate impact) - 2006
Settlement: $10.5 million
Target Corporation (Discriminatory hiring assessments) - 2015
Settlement: $2.8 million