A proposed class action lawsuit filed in California challenges whether AI-powered hiring tools must comply with the Fair Credit Reporting Act (FCRA). The case targets Eightfold AI, alleging its software collects extensive personal data — such as LinkedIn profiles, online activity, and other public information — to evaluate job applicants without their consent. Plaintiffs argue the system effectively produces “consumer reports,” which would trigger FCRA requirements like disclosure and authorization. The case could set an important precedent for regulating AI-based hiring technologies.
Hiring Tips Blog
Groundbreaking Lawsuit Tests Whether AI Hiring Tools Trigger FCRA Compliance
May 1, 2026 | Fair Credit Reporting Act
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