Article contributed by Jared Nossen, Ellenoff Grossman & Schole LLP
Restaurant owners and operators are increasingly using AI-powered tools to draft job postings, screen resumes, schedule interviews, summarize applications, and even assist with onboarding new employees. For businesses facing staffing shortages, rising labor costs, and high employee turnover, these tools offer an efficient way to streamline hiring and save time.
Hiring has never been easy in the hospitality industry. Restaurants are constantly recruiting new employees, replacing staff, and preparing for seasonal fluctuations in business. AI simplifies many of these administrative tasks by helping employers draft job descriptions, organize resumes, develop interview questions, prepare offer letters, and communicate with applicants more efficiently. As a result, managers can spend less time on administrative work and more time running their businesses.
The growing use of AI also comes with additional responsibilities. While these tools can make the hiring process more efficient, they should be viewed as decision-support tools, not decision-makers. Employers remain responsible for their hiring decisions, regardless of whether AI played a role in the process.
Employers should also be aware that AI is becoming an area of increased legal scrutiny. In New York City, Local Law 144 regulates the use of certain AI hiring tools by requiring employers to provide notice to applicants and complete annual bias audits before using covered technology in hiring or promotion decisions. Restaurant owners using AI should ensure they understand both their obligations and those of their AI vendors. Outside New York City, Employers should not assume AI use is unregulated. Existing anti-discrimination laws still apply, and employers remain responsible for employment decisions made with the assistance of AI. Using a third-party platform does not eliminate potential liability if the technology produces discriminatory results.
Beyond the legal requirements, restaurant owners should also consider the practical implications of using AI in the hiring process. Many restaurants already rely on AI to sort through dozens, or even hundreds, of applications. While AI can significantly speed up recruitment, employers should understand how these systems generate their recommendations. If a manager cannot explain why qualified candidates were rejected, defending that hiring decision may become more difficult.
The takeaway for restaurant owners is not that AI should be avoided. Rather, employers should recognize that AI is simply another business tool. Like scheduling software, payroll systems, and point-of-sale (POS) technology, it can improve efficiency when used appropriately. However, it should support hiring decisions, not replace them. As AI continues to evolve, employers should combine these tools with human oversight to ensure hiring decisions remain fair, compliant, and legally defensible.
Employers should also remember that no AI platform is one-size-fits-all. A tool that works well for a large national chain may not be the right fit for an independent restaurant with different staffing needs, hiring practices, and budgets. Before implementing AI, employers should consider whether the technology addresses a genuine business need and integrates with their existing systems, while allowing managers to remain actively involved in the hiring process.
As AI continues to evolve, restaurant owners should take the time to understand how these systems operate before incorporating them into the hiring process. Does the software simply organize applications, or does it also rank candidates? Can managers review and override the recommendations? What information is being analyzed? Has the vendor tested the software for potential bias? Understanding these basic questions allows employers to make informed decisions about whether a particular product is appropriate for their business.
AI also presents risks beyond hiring. Many employers have begun using generative AI platforms to draft disciplinary notices, employee handbooks, investigation summaries, performance evaluations, termination letters, and other employment-related documents. These tools can be valuable starting points, but they should never replace careful managerial or legal review. AI-generated documents may contain factual inaccuracies, omit important legal requirements, or include language that is inconsistent with an employer’s policies or prior practices.
The same principle applies to everyday workplace communications. AI can help draft emails, employee announcements, and training materials, but managers should review the final product to ensure it accurately reflects the restaurant’s policies, culture, and expectations. A few minutes of review can prevent misunderstandings and help maintain consistent communication with employees.
Another important consideration is protecting confidential information. Many publicly available AI platforms use information entered by users to improve their systems. Restaurant owners and managers should avoid entering confidential employee information, payroll records, medical information, disciplinary records, attorney communications, internal investigation materials, or proprietary business information into public AI platforms unless they fully understand how that information will be stored and protected. Employers should also consider adopting internal guidelines regarding when AI may be used, what information may be entered into these systems, and who is authorized to use them.
Technology has transformed nearly every aspect of operating a restaurant, and AI is simply the next evolution. The most successful employers will likely be those who embrace the efficiencies AI offers while continuing to rely on experienced managers to make decisions that technology cannot. Common sense, sound judgment, and personal interaction remain essential parts of the hiring process.
Employers who understand AI’s capabilities, recognize its limitations, and maintain meaningful human oversight will be better positioned to improve efficiency while reducing legal risk. AI should help managers make better decisions, not make those decisions for them.
Jared Nossen is an Associate in the Labor & Employment Group at Ellenoff Grossman & Schole LLP. His practice focuses on representing employers in a broad range of employment-related matters, including litigation involving wage and hour disputes, employment discrimination, retaliation, and harassment claims. In addition to his litigation practice, Mr. Nossen regularly advises employers on day-to-day workplace issues, including employee discipline and termination, workplace investigations, and compliance with federal, state, and local employment laws. Mr. Nossen can be reached at (212) 370-1300 or jnossen@egsllp.com.
