AI and wage and hour laws: what employers need to know

More and more businesses are using artificial intelligence, including generative artificial intelligence models ("AI") to perform tasks currently performed by human workers. We don't expect that AI will replace an entire workforce, given AI's tendency to "hallucinate," a term used to refer to AI generating a false response. As such, at minimum, many businesses that rely on AI will nonetheless still need to employ human workers to oversee AI outputs.

The use of new AI models, however, will certainly have the potential to transform the workplace, and therefore employers should be mindful that changes to employees' job responsibilities as a result of AI tools may require employers to re-classify workers' exemption status under federal and state overtime laws.

AI has the potential to radically change employees' work responsibilities. For example, workers who previously handled frontline customer service interactions might find that a chatbot now fields initial inquiries, and only the most complex customer concerns that cannot be addressed by the chatbot are elevated to a human representative.

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