83% of Companies Plan AI Resume Screening. Most Have No Evidence It Works — or Who It Harms.
By Tim Kreling, Co-Founder, OVI
FAQ
What did the NYC LL144 audit actually find?
The December 2025 New York State Comptroller audit found that DCWP's enforcement of Local Law 144 was inadequate. Of 32 companies surveyed, DCWP found only 1 non-compliant — while independent auditors identified 17 non-compliance instances among the same group. Additionally, 75% of 311 test calls to the enforcement hotline were improperly routed, effectively preventing workers from reporting violations.
Is AI resume screening legal?
Yes — there is no blanket prohibition on AI resume screening in any US jurisdiction. However, AI screening tools remain subject to Title VII disparate impact liability. Employers must be able to demonstrate their tools are job-related and consistent with business necessity. The removal of federal AI hiring guidance in January 2025 has not eliminated this underlying legal obligation.
What is Mobley v. Workday?
Mobley v. Workday is a pending federal class-action lawsuit alleging that Workday's AI screening platform systematically filtered out candidates based on age, race, and disability. In February 2026, the court authorised class notice — meaning the case can proceed as a class action rather than requiring individual suits. No liability determination has been made; the case is ongoing.
How can HR leaders assess AI tool validity?
Ask three questions: (1) Has the tool been validated through criterion-related studies published in peer-reviewed journals — not just vendor white papers? (2) Has an independent third party conducted bias audits against protected categories and published the results? (3) Can the tool's decision logic be explained to candidates and regulators? If the answer to any is no, the tool presents unquantified risk under current regulatory frameworks.
What does trustworthy AI hiring look like in practice?
Trustworthy AI hiring combines validated assessment science with transparent technology: configurable rubrics with inspectable weights aligned to job requirements, human-in-the-loop decision architecture, no biometric analysis, published third-party bias audits, and compliance documentation mapping to applicable jurisdictions. The standard is not perfection — it is auditability, transparency, and demonstrated validity.
What did the NYC LL144 audit find?
DCWP found 1 violation; independent auditors found 17 among the same 32 companies. 75% of hotline calls were misrouted. Enforcement was inadequate.
Is AI resume screening legal?
Yes, but subject to Title VII disparate impact liability. Employers must prove tools are job-related and business-necessary — removing federal guidance does not change this.
What is Mobley v. Workday?
The first federal class action targeting an AI hiring platform. Class notice authorised Feb 2026; alleges age, race, disability discrimination via biased training data. No liability finding yet.
How do I assess AI tool validity?
Ask for peer-reviewed criterion-related studies (not white papers), independent bias audits with published results, and explainable decision logic. No to any = unquantified risk.