Can Employers Use AI or Algorithms to Evaluate Employee Performance?

AI and algorithms are transforming workplaces across Chicago and beyond. Employers increasingly rely on these tools to screen job applications, monitor productivity and evaluate employee performance. While these technologies promise efficiency, they also raise serious questions about fairness and discrimination. If your employer used AI or algorithms to assess your work, and you received a score that doesn’t reflect your actual performance, you may have legal options. The Law Office of Mitchell A. Kline helps employees understand their rights when automated systems produce biased or inaccurate results.

Discussing your performance evaluation with an attorney can help you learn:

• What to do if you receive an unfair evaluation
• How AI bias occurs in performance evaluations
• Legal protections against algorithmic discrimination
• Common issues with automated scoring systems
• Your rights under federal and state employment laws

Can Employers Legally Use AI and Algorithms to Evaluate Performance?

Yes, employers can use AI tools to assess employee performance. However, these systems must comply with federal anti-discrimination laws, including Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA).

The Equal Employment Opportunity Commission (EEOC) has made clear that employers cannot hide behind technology to avoid liability. If an AI system produces discriminatory results, whether intentional or not, the employer remains responsible.

What Problems Can Arise from Automated Performance Scoring?

AI systems learn from data, and if that data reflects historical biases, the algorithm will too. AI-driven performance evaluations can present several significant issues. A primary concern is that the AI’s training data may reflect historical biases, leading to discriminatory outcomes. The algorithms themselves can inadvertently penalize employees based on protected characteristics.

Furthermore, many AI systems are not designed to account for reasonable accommodations needed by some employees. This problem is often compounded by a lack of human oversight in the final decision-making process and opaque scoring methods, which prevent employees from understanding or challenging their evaluations.

How Do Unfair Evaluation Outcomes Harm Employees?

Biased AI evaluations damage careers and livelihoods. When algorithms produce inaccurate scores, employees face:

Professional consequences:

• Denied promotions or advancement opportunities
• Reduced bonuses or performance-based pay
• Placement on performance improvement plans
• Wrongful termination based on flawed data
• Damage to professional reputation

Financial impact:

• Lost wages from demotions or terminations
• Reduced retirement contributions
• Missed opportunities for raises
• Costs of finding new employment
• Long-term career setbacks

Why Is There a Lack of Transparency in AI Rating Systems?

Many employees never know why they received poor evaluations. AI systems operate as “black boxes.” Employers use them to make decisions, but cannot explain how the algorithm reached its conclusion.

Transparency problems:

• Employers don’t disclose what factors the AI weighs
• Scoring criteria remain hidden from employees
• No clear path to challenge automated decisions
• Vendors claim proprietary technology prevents disclosure
• Human decision-makers defer to algorithmic results without question

This lack of transparency makes it difficult to identify discrimination. If you don’t know why you received a low score, how can you prove the system treated you unfairly?

Employers must provide reasonable accommodations when using AI tools, including alternative testing formats and clear explanations of evaluation criteria. Failing to do so may violate the ADA.

What employers should provide:

• Advance notice that AI will be used in evaluations
• Clear description of what the tool measures
• Opportunity to request accommodations
• Explanation of how scores are calculated
• Ability to challenge or appeal automated decisions

What Should You Do If You Received a Wrongfully Negative Score?

If you believe an AI system evaluated you unfairly, take action quickly. Employment discrimination claims have strict deadlines, and waiting too long could cost you your legal rights.

Immediate steps:

1. Document everything: Save copies of your evaluation, performance metrics and any communications about your scores.
2. Request explanation: Ask your employer to explain how the AI system works and what factors influenced your score.
3. Identify patterns: Look for evidence that the system may have disadvantaged you based on a protected characteristic.
4. Report concerns: File an internal complaint with HR or your company’s ethics department.
5. Consult an attorney: Contact an employment lawyer who understands AI discrimination issues.

Protecting Your Rights in an AI-Driven Workplace

Technology continues to reshape how employers evaluate workers. While AI offers benefits, it also creates new risks for discrimination. Employees need to understand these risks and know their legal protections.

If your employer used AI or algorithms to evaluate your performance and you received an unfair score, you don’t have to accept it. The Law Office of Mitchell A. Kline fights for employees’ rights and holds employers accountable for discrimination, whether it comes from a person or a machine. We’ll review your situation, explain your legal options and help you decide the best path forward. Contact us for a consultation.