As of October 1, 2025, California’s Civil Rights Council regulations under FEHA hold employers liable for discrimination arising from the use of automated decision systems (ADS) in hiring. The use of AI or other automated tools does not shield employers from liability; decisions made through such systems are treated as the employer’s own actions.
In a first-of-its-kind move, California has finalized groundbreaking regulations that directly address the use of artificial intelligence (AI) and automated decision systems (ADS) in employment. These rules, approved by the California Civil Rights Council in March 2025, signal a clear message: while AI tools can be valuable in recruitment, hiring, and workforce management, they