California is the latest mover in a world of evolving AI regulation, amending the Fair Employment and Housing Act’s (FEHA) regulatory framework to address the use of artificial intelligence in employment-related decisions. The amended regulations take effect on Oct. 1, 2025, so now is the time to understand what the regulations do and don’t require.

TLDR: The Regulations in a Nutshell

While the FEHA and its implementing regulations already prohibited discrimination based on protected characteristics — including discrimination effectuated by artificial intelligence — the amendments now explicitly state that existing anti-discrimination protections apply to discrimination occurring through the use of an Automated Decision System (ADS).

An ADS is defined as a computational process that “makes a decision” or “facilitates human decision making” regarding an employment benefit. The definition of “employment benefit” is broad and includes, for example, hiring, promotions and selection for training programs.

The regulations provide examples of what may be considered an ADS, including:

• Using computer-based assessments or tests to screen, evaluate, categorize or recommend applicants for employment.
• Directing job advertisements or recruiting materials to targeted groups.
• Screening resumes for particular terms or patterns.
• Analyzing employee or applicant data acquired from third parties.

Do the Regulations Apply to Me?

The regulations apply to any “covered entity,” including...

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