EEOC v. iTutorGroup — hiring software that auto-rejected older applicants
What happened
iTutorGroup, which hired US-based online tutors for students in China, programmed its application software to automatically reject female applicants aged 55 or older and male applicants aged 60 or older. The EEOC alleged that in 2020 alone more than 200 qualified applicants were screened out because of their age. The lead applicant discovered it by re-applying with a younger birth date and getting an interview.
The rule
Age Discrimination in Employment Act (ADEA), which bans employment discrimination against people aged 40 and over. It was the EEOC's first settled lawsuit involving automated hiring software.
Outcome
Settlement announced 9 August 2023 (EEOC v. iTutorGroup, Inc., No. 1:22-cv-02565, E.D.N.Y.). iTutorGroup agreed to pay $365,000 to rejected applicants, adopt new anti-discrimination policies and training, stop asking for birth dates, invite previously rejected applicants to re-apply if US hiring resumes, and accept EEOC monitoring for five years. The company did not admit wrongdoing.
What this means for you
A hard-coded rule in your ATS is still an employment decision, and 'the software did it' is not a defence. Review every filter and scoring rule in hiring tools for protected characteristics or proxies, remove unnecessary data such as birth dates, and keep records that show who was screened out and why.
Laws involved
- Illinois HB 3773In forceUS-IL
- NYC Local Law 144In forceUS-NY
- Colorado ADMT ActUpcomingUS-CO
- Ontario AI job-posting disclosureIn forceCA-ON
Sources
- iTutorGroup to Pay $365,000 to Settle EEOC Discriminatory Hiring Suit — EEOC press release ↗
- EEOC Settles First AI-Discrimination Lawsuit — Sullivan & Cromwell ↗
- Tutoring firm settles claim alleging its recruiting algorithm screened out applicants over 60 — HR Dive ↗
Last reviewed Sep 25, 2026.