AI-Driven Layoffs: Employment Discrimination Claims, Algorithmic Evidence, and Defense Strategies

Course Description

More employers are using artificial intelligence to decide which positions and employees to cut in a reduction in force. Plaintiffs’ lawyers and regulators are paying close attention. This webinar looks at how disparate treatment and disparate impact theories under federal apply when an algorithm helps make employment decisions, and how emerging state and local AI laws compound the risk. This presentation will cover the new evidentiary problems these cases raise, including discovery of training data, AI prompts and outputs, and vendor records, and the use of statistical and technical experts to attack or defend algorithmic outcomes. Attendees will leave with practical defense strategies relative to privileged bias audits, documenting human oversight, structuring vendor contracts, and proactively building a defense record before effectuating the terminations.

Principles

• Understand S Corporation Eligibility and Ownership Requirements – Identify the eligibility rules for S corporations and permissible shareholders, including restrictions that may affect estate planning strategies and the transfer of shares.
• Coordinate Estate Planning with S Corporation Tax Requirements – Recognize the tax and administrative consequences of holding S corporation stock in an estate or trust and incorporate those considerations into effective estate planning.
• Select and Structure Appropriate Trusts – Understand the use of Qualified Subchapter S Trusts (QSSTs) and Electing Small Business Trusts (ESBTs), including their respective requirements, benefits, and limitations.
• Make Timely and Appropriate Tax Elections – Identify necessary elections and filing requirements to preserve S corporation status when shares are held by trusts, estates, or other fiduciary entities, including planning considerations for QTIP trusts.
• Address Estate Tax Liquidity and Payment Strategies – Evaluate the application of IRC Section 6166 and the potential to defer estate tax payments when an estate includes interests in a closely held S corporation.

Syllabus

1. How is AI used by employers in the termination process
2. What is required to execute a successful RIF under federal and state law
3. What potential litigation disputes can arise from using AI in the termination process
4. How can employers best mitigate risk related to AI-assisted terminations