AI in employment decisions: New compliance considerations for California employers | Freeman Mathis & Gary
https://www.jdsupra.com/legalnews/ai-in-employment-decisions-new-6606793/
Publish Date: 2026-05-18 11:05:00
Source Domain: www.jdsupra.com
- New amendments to California employment regulations now hold employers liable for discrimination through the use of Automated-Decision Systems (ADS) in hiring and employment practices, effective October 1, 2025.
- ADS are defined broadly to include any computational processes, including AI-assisted tools, that affect employment decisions.
- The regulations integrate ADS into the definition of an “agent,” meaning decisions made by automated systems are treated as decisions made by the employer for liability purposes.
- Specific prohibited practices include using ADS for discriminatory assessments such as by race, national origin, gender, disability, or other protected characteristics.
- Employers are expected to ensure their use of ADS complies with the Fair Employment and Housing Act (FEHA), similar to human-made decisions, as AI is not considered a neutral intermediary but an extension of the employer.
