California – Starting October 1, 2025, California will enforce new AI employment regulations to address how artificial intelligence and automated decision systems (ADS) are used in hiring, promotions, and other workplace decisions. The California Civil Rights Council introduced regulations to prevent technology-driven tools from causing discrimination against job applicants or employees. While AI and automation improve recruitment efficiency, they also raise concerns about fairness, bias, and equal opportunity under state law.
Key Provisions of California’s AI Employment Regulations
The California Civil Rights Council’s regulations will go into effect on October 1, 2025, updating the Fair Employment and Housing Act (FEHA) framework. These rules apply to any employer using AI or automated decision systems (ADS) to make hiring, recruiting, or promotion decisions.
The regulations specify that AI tools that cause adverse effects or direct discrimination based on protected categories may violate California law. Protected categories include race, gender, age, disability, and national origin.
Employers must keep employment records, including automated decision data, for at least four years. The regulations also ban the use of ADS tools that serve as illegal medical inquiries or create obstacles for individuals with disabilities.
Importantly, companies can be liable even if the bias was unintentional, extending responsibility to employers and third-party vendors acting as agents. To defend against claims, employers are advised to perform anti-bias testing and document proactive compliance efforts.
Worker Protections Under the New AI Regulations
California’s AI employment rules clarify protections for workers and applicants. They ensure employer compliance and provide ways to challenge biased automated decisions. Discriminated employees can file FEHA complaints for compensation or correction.
Key worker protections include:
- The right to request reasonable accommodations if AI-driven assessments disadvantage individuals with disabilities or religious needs.
- The ability to challenge hiring or promotion decisions influenced by biased algorithms.
- Legal recourse to recover lost wages, benefits, or damages for emotional harm caused by discriminatory practices.
- Accountability that extends to both employers and outside vendors using AI on their behalf.
Together, these safeguards ensure technology supports fair employment opportunities rather than undermining them.
Fight Back With an Experienced Employment Lawyer
Navigating the new AI employment regulations may be overwhelming for workers facing discrimination in the hiring process or on the job. If you believe you were treated unfairly, our employment lawyers offer free consultations to evaluate your case, explain your rights, and guide potential claims.
Contact us today to discuss workplace discrimination or unfair treatment with a dedicated employment lawyer. Your rights deserve protection.
