California has made it clear that artificial intelligence (AI) utilization must conform to long-standing anti-discrimination laws under the Fair Employment and Housing Act (FEHA). Accordingly, the California Civil Rights Council recently updated existing anti-discrimination laws in California’s FEHA to specifically address the use of technology in making employment decisions and to protect against employment discrimination arising from AI, algorithms, and other automated decision systems (ADS).
As California employers newly incorporate AI agents into their employment procedures, it is vital that they comply with the new anti-discrimination provisions adopted by the Civil Rights Council. Below, we consider the specific provisions.
Effective October 1, 2025, California employers must comply with new FEHA regulations that hold them accountable for discrimination resulting from the use of AI and ADS in the employment process. This applies to employers and companies with five or more employees.
These new rules apply to ADS, including computer use with AI, machine learning, and algorithms that employers use to make or assist in employment decisions, such as hiring, firing, promotion, and compensation.
Some common examples include:
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