California employers are entering a new phase of employment risk. As artificial intelligence (AI) becomes embedded in core HR functions—from timekeeping to classification—traditional compliance issues are being replicated at scale.
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A federal California judge granted final approval to a $303 million settlement resolving an antitrust class action involving thousands of Division 1 "volunteer" coaches, which plaintiffs counsel previously called "one of the largest recoveries ever in a Sherman Act case filed on behalf of workers seeking lost wages."
Employers who deploy these tools without strong compliance programs now face converging risks from FEHA discrimination liability, CPRA privacy enforcement, emerging common-law theories such as FCRA claims against vendors, and proposed legislation that would further expand private rights of action.
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