Curbing AI's Potential for Workplace Discrimination

Artificial intelligence defines itself as "the simulation of human intelligence in machines that are programmed to think, learn, and solve problems like humans, enabling them to perform tasks that typically require human reasoning, such as understanding language, recognizing patterns, and making decisions."

AI emerges as a workforce tool with the humans having already staked a claim on the do's and don'ts. These include federal and state protections against discrimination over protected characteristics such as gender, race and disability. See, e.g., Boundaries 101, California's Anti-Discrimination Legislation (August 1, 2025).

California's Civil Rights Council (CRC) is out to expand those protections to AI systems in recruitment, hiring and promotion. Inadequately overseen by company management, such streamlined processes can unlawfully discriminate, particularly against qualified individuals with disabilities who may need accommodation.

To this end, the CRC has issued regulations effective October 1, 2025.

Key Provisions:

• Clarify that using automated-decision systems may violate California law if outcomes harm applicants or employees based on protected characteristics such as gender, race, or disability;
• Require employers to maintain employment records, including automated-decision data, for at least four years;
• Affirm that automated-decision assessments--such as tests, questionnaires, or puzzle games that reveal information about a disability--may constitute an unlawful medical inquiry; and
• Define key terms such as "automated-decision system," "agent" and "proxy" to establish consistent standards.

CRC Councilmember Hellen Hong stated, "We are proud to update these rules to better protect Californians from potential employment discrimination posed by the widespread use of automated decision-making systems."

Civil Rights Department Director Kevin Kish added, "These new regulations on artificial intelligence in the workplace aim to help our state's antidiscrimination protections keep pace."

Take-Aways:

Employers should review all AI tools used in hiring, promotions, and evaluations, require vendors to test for bias, and document compliance efforts.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Digital Diligence - AI Hiring Tools Must Avoid Discrimination (May 15, 2025)
• Older Workers are People Too - EEOC Settles Age Discrimination Claim Against Theatre Chain (May 9, 2025)
• Workplace Artificial Intelligence -- EEOC Goes Old School (May 26, 2023)

Cindy Bamforth
August 28, 2025