The use of artificial intelligence (AI) in employment decision-making is no longer a theoretical, future-tense possibility. It is here and is reshaping how employers find, assess, and promote talent. As employers’ use of AI has increased, so has the development of AI regulation at the state and local level, including in California. As discussed in K&L Gates’ 29 March 2025 alert, California took a number of steps in 2025 to regulate the development and use of AI in employment to ensure that California employers’ use of AI tools is free of discrimination and bias.1 This alert takes a closer look at one of those recently implemented regulatory actions. On 1 October 2025, the California Civil Rights Council’s (CRC) March 2025 “Employment Regulations Regarding Automated-Decision Systems” took effect (CRC Regulations) under the Fair Employment and Housing Act (FEHA). Now, every California employer covered by the FEHA must practice algorithmic accountability when using Automated Decision Systems (ADS) and AI in employment decisions.2
The intent of the CRC Regulations is clear: innovation must serve fairness and equity, not undermine it. An AI tool’s efficiency, while powerful, cannot replace human oversight, judgment, and analysis. Under the CRC Regulations, human participation is required not only to understand how the tool impacts a candidate or employee’s opportunities but also to determine when and how to intervene when an ADS is used.
LOS ANGELES--(BUSINESS WIRE)--Louis J. Cohen, P.C. announces a landmark whistleblower award agreement with the United States and the State of California, securing more than $4.5 million for our cli...