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State regulations under the Fair Employment and Housing Act (FEHA) targeting AI-driven discrimination in the workplace.
Effective late 2025, these rules clarify that using Automated-Decision Systems (ADS) for hiring, firing, or performance monitoring can lead to employer and vendor liability. They mandate anti-bias testing and require organizations to maintain records of selection criteria and ADS data for at least four years to defend against discrimination claims.
Real world example:
A company using an AI video-interview analyzer must conduct annual adverse impact studies to prove the tool doesn't score candidates lower based on their accent or physical mannerisms as required by FEHA standards.
