Takeaways

• The new regulations apply to all employers in California and pertain to any automated decision system — not just advanced “AI” tools, but also those using selection criteria for hiring, promotions or training.
• Employers are prohibited from using automated decision system (ADS) or criteria that result in discrimination based on protected categories under FEHA and must accommodate religious and disability needs.
• Employers should consider conducting bias audits of their ADS.

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Article

California’s Civil Rights Department finalized regulations to curb the discriminatory impacts of artificial intelligence and automated decision-making in the workplace. The regulations apply to all employers in California and take effect on Oct. 1, 2025.

The regulations define an automated decision system (ADS) as any computational process that makes or assists in making employment decisions, such as hiring, promotions, selection for training programs, or similar activities. The regulations apply beyond “machine learning” artificial intelligence and cover systems that involve the use of “selection criteria.”

Among other uses, businesses may use regulated ADS to:

• Screen resumes for particular terms or patterns;
• Direct job advertisements or recruiting materials to targeted groups;
• Assess applicants’ or employees’ skills through questions, puzzles, games, or challenges; and
• Analyze audio or video recordings to evaluate, categorize, or recommend applicants or employees.

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