Overview

• The Civil Rights Council’s July 30 vote amends FEHA to explicitly regulate AI hiring and screening systems under California’s equal employment law.
• The regulations define key terms including “automated-decision system,” “machine learning” and “ADS data” to clarify the scope of covered technologies.
• Employers must gather and retain detailed ADS decision records and applicant demographic data for at least four years and offer accommodations when systems assess protected characteristics.
• FEHA’s definition of “employer” now encompasses agents and third-party ADS vendors, exposing developers and deployers to legal liability.
• A new affirmative defense allows employers who conduct and document anti-bias testing to demonstrate good-faith efforts to prevent discrimination, including against proxy bias.