California AI Employment Compliance
Navigating the Equal Employment and Housing Act (FEHA) and Automated Decision System (ADS) regulations.
California's Anti-Bias Regulations
California is leading the way in regulating Automated Decision Systems (ADS) employment.
Under proposed modifications to the Fair Employment and Housing Act (FEHA), employers are strictly liable if their AI tools result in a "discriminatory impact," even if unintentional.
Employers must actively ensure three things:
- Pre-use Bias Testing
- Record Retention (4 yrs)
- Alternative Methods
Is Your Hiring Process Compliant?
Check your risk level regarding California's automated decision-making rules.
California Employment Fairness Check(FEHA & Automated Decision Systems)
Check if your use of AI in hiring aligns with California's strict anti-discrimination and privacy standards.
What this questionnaire covers
- Definition of Automated Decision Systems (ADS)
- Requirement for anti-bias testing
- Notices and human oversight obligations
Core Obligations
1. Bias Testing
- • Employers must evaluate ADS for discriminatory impact
- • "Vendor assurance" is often not a sufficient legal defense
- • Testing should be done before deployment
2. Record Retention
- • Retain all applications and personnel files for at least 4 years
- • Keep records of the criteria used by the ADS
- • Keep records of the input data and output scores
3. Notice & Opt-Out
- • Notify applicants they are being evaluated by AI
- • Provide an "off-ramp" or alternative selection method if requested (best practice)
Who Is Responsible?
| Responsibility | Expert Hire | Employer |
|---|---|---|
| Provide bias-tested algorithms | ||
| Structured data export for audits | ||
| 4-year data retention capability | ||
| Final hiring decision | ||
| Conducting specific workplace bias audits |
Built for California Employers
We proactively engineered our platform to meet the high standards of FEHA and upcoming CPPA rules.
Audit-Ready Data
All selection criteria and data outputs are stored in a format ready for internal or external bias audits.
Human-First Design
Our system facilitates human decision-making rather than replacing it. This "augmentation" approach is safer under California law.
Frequently Asked Questions
Are small businesses exempt?
The FEHA generally applies to employers with 5 or more employees. There is no broad exemption for small businesses regarding discrimination.
Can we blame the vendor if the AI discriminates?
Under proposed regulations, employers are liable for the tools they use. You cannot outsource liability to a vendor completely.
Does this apply to remote workers?
Yes, if the employee is based in California or if the hiring decision is made by a California entity affecting California residents.
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