A major feature of AI for recruiting is its ability to stop unconscious bias. A recent lawsuit reminds us why we need to avoid bias during hiring: Palantir, a software startup, is paying $1.7 million to settle a racial discrimination lawsuit with the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP).

Similar to EEOC guidelines, as a federal government contractor, Palantir cannot discriminate based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability or against military veterans.

The Department of Labor accused Palantir of disproportionately eliminating qualified Asian applicants for engineering positions. The lawsuit alleges Asian applicants were routinely eliminated in the resume screening and telephone interview phases despite being as qualified as white applicants. Continue reading