Artificial intelligence has been part of the employment landscape for several years, particularly in recruiting, screening, and evaluation processes. What many employers are only now beginning to appreciate, however, is the extent to which regulators expect those tools to be governed by existing anti‑discrimination principles, with real consequences for how automated systems are used in practice.
Amendments to California employment regulations governing Automated‑Decision Systems (“ADS”), which have now been in effect for several months, reflect the Civil Rights Department’s clear intent to prevent employers from relying on artificial intelligence as a shield against liability.
California’s ADS regulations are now in effect
Effective October 1, 2025, Title 2 of the California Code of Regulations adopted various additions and amendments concerning the use of Automated‑Decision Systems in the realm of employment law. These regulations impose FEHA liability upon an employer who discriminates against an employee or applicant through the use of ADS in recruitment, screening, hiring, advancement, or other employment‑related decisions.
As employers continue to expand their reliance on AI‑assisted decision‑making, these rules now operate as an active compliance standard, not a future consideration.
What is an automated‑decision system?
An Automated‑Decision System is defined as:
“A computational process that makes a decision or facilitates human decision making regarding an...
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