California regulations going into effect on October 1, 2025, make clear that employers’ use of artificial intelligence in personnel practices can lead to liability under state fair employment laws.
Partner Odia Kagan, Chair of the firm’s Data Privacy Compliance & International Privacy Practice Group, provides a breakdown in a post to the firm’s Privacy Compliance & Data Security Blog.
Here are two of her key takeaways:
- The regulations clarify that an employer’s use of an automated-decision system or selection criteria that discriminates against applicants or employees on a basis protected by California law can give rise to employer liability. In short, AI engaging in unlawful discrimination may be attributed to the employer using the AI.
- Employers may run systems using AI through anti-bias testing or take similar proactive efforts to avoid unlawful discrimination claims or more effectively defend them.
To read Odia’s full post, click here: Employment Discrimination Using AI Is Still Discrimination
Odia also dives into California’s SB-7 in additional detail in this blog post: What California Employers Need to Know About the Use of High-Risk Automated Decision Systems