DIGITAL DILIGENCE AI Hiring Tools Must Avoid Discrimination « Law Offices of Timothy Bowles | Top Employment Law Firm in Los Angeles

DIGITAL DILIGENCE
AI Hiring Tools Must Avoid Discrimination

California’s Fair Employment and Housing Act (FEHA) protects employees against discrimination, harassment and retaliation.

The state’s Civil Rights Council (CRC) aims to expand those protections to automated decision-making systems (ADS) using artificial intelligence and algorithms in recruitment, hiring and promotion. Inadequately overseen by company management, such streamlined processes can perpetuate biases and lead to discrimination, particularly against individuals with disabilities who need accommodations.

On March 21, 2025, the CRC approved proposed final regulations to:

  • Define “agent” to include anyone acting on the employer’s behalf to recruit, hire, promote, etc. via ADS;
  • Prohibit the use of any ADS that discriminates against FEHA-protected characteristics (e.g., race, gender, disability; and
  • Mandate employers retain employment records (e.g., applications, selection criteria, ADS data) for four years.

Take-Aways:

The California Office of Administrative Law (OAL) will review and potentially approve these regulations, likely effective July 1, 2025. Employers should maintain caution and implement human review processes to avoid inadvertent workplace discrimination through AI tools.

For further information, please contact Tim BowlesCindy Bamforth or Helena Kobrin.

See also:

Cindy Bamforth
May 15, 2025

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