BLOG

CA legislators approved some regulations regarding how employers may use Artificial Intelligence as part of their employment process.

Requirements For CA Employers

As of October 01, 2025, employers in California will be required to follow new regulations when using any Automated Decision System (ADS), an Artificial Intelligence tool, for hiring, promoting or other employment related actions. Perhaps the key takeaway is that organizations must take steps to ensure the tools they use do not inadvertently discriminate against applicants, employees or others.

The regulations specify employers are prohibited from using AI tools that discriminate against any individual based on a protected category. Those categories are defined by the Fair Employment and Housing Act (FEHA). Examples include:

• Age
• Origin
• Gender
• Disability
• Race and Color
• Religion
• Sex and Sexual Orientation

Employers will also be required to save employment records that were created using AI tools for a minimum of four years.

Definition Of ADS

California’s upcoming regulations defines ADS as: “any computational process that makes or assists in making employment decisions, such as hiring, promotions, selection for training programs, or similar activities”

Businesses are permitted to utilize AI related tools for employment purposes. They are commonly used to:

• Screen applicant’s resumes.
• Help ensure specific groups see employment ads.
• Review and analyze audio/video recordings as part of the employer’s evaluation process.

Civil Rights Department Of California

These new regulations were devised by the Civil Rights Department Of California. In a statement, the department said ADS are increasingly used: “in employment settings to facilitate a wide range of decisions related to job applicants or employees, including with respect to recruitment, hiring, and promotion. While these tools can bring myriad benefits, they can also exacerbate existing biases and contribute to discriminatory outcomes. Whether it is a hiring tool that rejects women applicants by mimicking the existing features of a company’s male-dominated workforce or a job advertisement delivery system that reinforces gender and racial stereotypes by directing cashier ads to women and taxi jobs to Black workers, there are numerous challenges that may arise with the use of artificial intelligence in the workplace.”

The California Civil Rights Department (CRD) will be called upon to enforce the AI regulations. If any resident believes they experienced discrimination due to the use of an ADS, they may file a complaint with the CRD.

Takeaway For CA Employers

Employers in California should be aware that new AI regulations go into effect in October 2025. Representatives of businesses that use these tools may want to audit them before then to help verify that none of their ADS could be deemed discriminatory.

Every employer that takes advantage of ADS may want to conduct their own audit, including how they choose vendors that provide AI tools. Regulations like the ones that are being implemented in California are likely to become more common throughout the United States.

Employment Background Checks

However your organization manages the hiring process, comprehensive background checks should be an integral component. These reports help hiring managers make informed decisions, maintain safe workplaces and conduct due diligence practices.

If your business needs background reports, please contact us. Our friendly, experienced team can help you customize screening packages that are tailored to your specific needs, compliant with laws that are in effect where you operate and in line with industry standards. We are available to assist you Monday through Friday from 5am to 6pm PT.