Effective October 1, 2025, California will join a growing number of jurisdictions that regulate the use of automated-decision systems (ADS) in employment decisions. Employers in California should review their use of ADS in employee selection and assessment to ensure compliance with the state’s amended Fair Employment and Housing Act (FEHA) regulations and mitigate legal risks associated with algorithmic discrimination.

Using Automated Decision Systems in Employment

The amended FEHA regulations expand the definition of “employer” to include any agent acting directly or indirectly on behalf of an employer in making employment decisions, including those assisted by ADS. The regulations broadly define ADS as any “computational process that makes a decision or facilitates human decision making.” These systems, which utilize data and algorithms (e.g., artificial intelligence or natural language processing models), are increasingly used by employers for screening job candidates and assessing employee performance. Specifically, the regulations cite the following examples of tasks performed by ADS:

• Computer-based assessments that measure an applicant or employee’s skills, abilities, personality, aptitude, or otherwise make predictive assessments about an applicant or employee;
• Directing job advertisements or recruiting efforts to specific groups;
• Screening resumes;
• Analyzing an applicant’s voice and/or mannerisms during an interview; or
• Analyzing employee or applicant data from...

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