California has extended its existing nondiscrimination protections to include hiring decisions made in whole or in part by automated decision systems and artificial intelligence. The “Regulations to Protect Against Employment Discrimination Related to Artificial Intelligence,” effective October 1, 2025, make it “unlawful for an employer or other covered entity to use an automated-decision system or selection criteria (including a qualification standard, employment test, or proxy) that discriminates against an applicant or employee or a class of applicants or employees on a basis protected” by the California Fair Employment and Housing Act. The regulations define terms such as automated decision system, artificial intelligence, machine learning, and more.
Employers and employer “agents” (such as hiring firms) also must retain ADS data, personnel records, applications, selection criteria, and related documents for four years, up from the prior standard of two years.
In addition, per guidance issued by the state attorney general, use of AI in employment decisions must comply with state privacy and anti-discrimination laws.