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 — ...

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...