Effective October 1, 2025, California will join a growing number of jurisdictions that regulate the use of automated-decision systems (ADS) in employment decisions. Employers in California should review their use of ADS in employee selection and assessment to ensure compliance with the state’s amended Fair Employment and Housing Act (FEHA) regulations and mitigate legal risks associated with algorithmic discrimination.
Key Provisions:
- Prohibition on Discriminatory Use: Employers are prohibited from using ADS in a manner that discriminates against individuals or classes of individuals based on characteristics protected by FEHA.
- Affirmative Defense: Employers can assert an affirmative defense if they use anti-bias testing or similar proactive measures to prevent unlawful discrimination in the use of ADS.
- Record Retention: Employers must now retain records of ADS data in addition to their preexisting obligation to retain records of personnel actions. The regulations further increase the required records preservation period from two to four years.
You can read more details about the new rules and get some key takeaways for employers in this client alert from the Vorys labor and employment group.