Compliance Stuff

Starting on October 1, 2025, California employers must follow new regulations from the Civil Rights Council (CRC) regarding “automated-decision systems”, or “ADS” — that is, tools that use AI, algorithms, or other computer processes to help make employment decisions. What’s Covered? An ADS is any technology that makes or influences decisions about jobs or benefits — like: Resume screening software Online assessments, puzzles, and tests Interview tools that analyze tone, facial expressions, or word choice Recruiting ads targeted to specific groups Data analytics using applicant or employee information Importantly, basic tools (like spreadsheets or calculators) are not considered ADS if they don’t actually make employment decisions. Why the New Rules Matter The CRC’s position is clear: if an ADS results in discrimination based on race, gender, age, disability, religion, or any other protected characteristic, it’s unlawful under the California Fair Employment and Housing Act. Employers — ...

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. Related links Civil Rights Council Secures Approval for Regulations to Protect Against Employment Discrimination Related to Artificial Intelligence Navigating California’s New Regulations on Automated Decision-Making Tools 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...

At a Glance Revisions to Title 2 of the California Code of Regulations will govern the use of AI-based tools in California starting October 1, 2025. Among other things, the regulations define the scope of AI-driven (and other) automated decision-making systems (ADS), clarify what constitutes discriminatory use of ADS, require anti-bias testing of ADS, impose new recordkeeping requirements, and discuss affirmative defenses to employer liability. The final regulations are less burdensome than the original draft, but still impose several new compliance requirements for employers. On June 30, 2025, the California Civil Rights Council (“CRC” or “Council”) secured final approval for revisions to Title 2 of the California Code of Regulations, which governs administration of the California Civil Rights Department (CRD). These regulations interpret California’s Fair Employment and Housing Act’s (FEHA) prohibitions against discrimination in recruitment, hiring, promotion, training and terminatio...

The use of algorithmic software and automated decision systems (ADS) to make workforce decisions, including the most sophisticated type, artificial intelligence (AI), has surged in recent years. HR technology’s promise of increased productivity and efficiency, data-driven insights, and cost reduction is undeniably appealing to businesses striving to streamline operations such as hiring, promotions, performance evaluations, compensation reviews, or employment terminations. However, as companies increasingly rely on AI, algorithms, and automated decision-making tools (ADTs) to make high-stakes workforce decisions, they may unknowingly expose themselves to serious legal risks, particularly under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), and numerous other federal, state, and local laws. Quick Hits Using automated technology to make workforce decisions presents significant legal risks under existi...