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Friday, September 18, 2026

California Updates Regs For Using AI in Employment Decisions - SHRM

California continues to take steps to regulate the burgeoning use of artificial intelligence, machine learning, and other data-driven statistical processes in making consequential decisions, including those related to employment.

The California Civil Rights Council (CRC) recently issued updated proposed regulations governing automated-decision systems. In addition to these regulatory efforts, California lawmakers have introduced two bills designed to regulate AI in employment.

California's efforts at oversight now consist of the following:

  • The CRC's proposed modifications to employment regulations regarding automated-decision systems.
  • Assembly Bill No. 331 to add regulations relating to artificial intelligence and automated decision tools (ADTs).
  • Senate Bill No. 721 to create the California Interagency AI Working Group.

These approaches have a common goal of minimizing the potential negative consequences of artificial intelligence when deployed in the employment context.

Taken as a whole, the CRC appears to be leapfrogging the legislative process with its efforts. The following summarizes the latest updates regarding California's three-pronged approach.

Civil Rights Council's Proposed Rules

Since publishing draft modifications to its antidiscrimination law in March 2022, the CRC has continued to refine its definitions of key terms without altering the primary substance of the proposed regulations. The CRC's most recent proposal, released Feb. 10, includes the...



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