California is leading the nation with new regulations on the use of artificial intelligence (AI) in employment practices. Starting October 1, 2025, employers must follow antidiscrimination rules when using AI systems to make decisions on hiring, firing, promotion, or performance evaluations. If an AI system demonstrates bias against a protected group, even unintentionally, it may violate state civil right protections. This addresses a growing concern that AI tools used in decision-making may amplify existing inequalities in the workplace.

A wide range of AI tools used by employers are covered by the new regulations, from resume screeners to automated applicant ranking systems. Employers are encouraged to test these tools regularly for biases and document active preventative measures taken to mitigate potential discrimination in their AI tools. These records must be preserved for four years. The bottom line is that employers must explain how employment decisions using AI tools are made with preventative measures in mind.

For workers, these regulations provide a legal pathway to relief if they believe AI has been used to discriminate against them. For employers, the regulations create an incentive to conduct frequent bias testing and training as insurance against any lawsuits. Employers can raise evidence of anti-bias testing as an affirmative defense against AI discrimination lawsuits. Courts will have to weigh factors like the quality and timing of an employer’s bias testing, and whether any harmful results were addressed.

Additional AI legislation, SB 7, is on Governor Newsom’s desk awaiting signature. The bill could restrict employers from using AI to make personnel decisions without human involvement. California agencies are considering additional AI regulations in housing, education, lending, and health care.

 Lauren Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times. If you would like to speak with her about an employment matter, click here.

A slate of new protections for workers are now on Gavin Newsom’s desk as the 2023-2024 California legislative session officially ends. The dedicated advocacy of California Employment Lawyers Association has resulted in several promising measures one signature away from bringing new protections to California’s workers.
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Expanding Protections for Household Domestic Services
SB-1350 expands the California Occupational Safety and Health Act’s definition of “employment” to include household domestic services. The amended definition permits California to enforce and administer all occupational health and safety laws to protect employees performing household services. Previously, domestic workers were explicitly exempted from traditional worker protections.
These protections are critical for the domestic service industry. In the California, domestic workers are largely migrants and women of color.  The state contains an estimated 350,000 workers for 2 million households. These workers provide care to the most vulnerable populations of immunocompromised and senior individuals. They suffer the consequences of poor labor protection. A majority of surveyed household domestic workers (84%) have reported preventable musculoskeletal injuries and chronic pain, and over half of the surveyed workers (55%) reported working through their injuries due to fears about job security.

Intersectionality in Anti-Discrimination Protections
SB-1137 expands civil right protections in public schooling, public accommodations, housing, and employment. While the law currently affords protections against discrimination based on a protected trait, this bill expands those protections for any combination of two or more protected traits.
Senator Smallwood-Cuevas, the bill sponsor, recognized that individuals with intersectional identities could face discrimination that does not neatly fall into any single  category of discrimination. The bill is a common-sense reform that addresses this “intersectional discrimination” against Californians with overlapping identities. Advocates argue that the recognition of intersectional discrimination has judicial precedent. The EEOC and the Ninth Circuit have already recognized that protected characteristics can overlap creating an entirely unique form of discrimination.

Enhancing Employment Protections for Survivors of Violence
AB-2499 provides greater employment protections for survivors of violence.  Existing law requires an employer to provide reasonable accommodations for a survivor of violence or crime. Pre-existing protections forbid employers from discharging or discriminating against employees because of their status as a survivor of crime, abuse, or for taking time off to serve on a jury or as a witness in a judicial proceeding.
Amending existing law, this bill revises the definition of an unlawful employment practice under the California Fair Employment and Housing Act to include discrimination or retaliation against an employee for taking protected time off. California’s Civil Rights Department would have enforcement authority over violations of jury, court, and victim time off provisions. This bill addresses the growing impact of crime on employees. One in six victims of violent crime report job loss or demotion and 53% of domestic violence survivors report job loss due to their circumstances.

For more on the latest developments in employment law, visit our blog here. If you believe your employer may have violated workplace laws, click here to get in touch with our office