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Are California workers protected from discrimination by AI-based hiring processes?

On Behalf of | Jun 19, 2025 | Employment Law

As artificial intelligence continues to develop, it’s increasingly being used in the hiring process. For example, AI may be used to screen resumes and applications, determining which candidates should move forward and receive interviews. While the company still makes the final hiring decision, workers who are excluded by the AI may feel they’ve been discriminated against.

Some steps have already been taken by the California Civil Rights Department, which has issued regulations aimed at preventing AI from exhibiting bias in hiring decisions. If these regulations are followed correctly, discrimination should not occur. These efforts help extend long-standing protections that workers have had when human HR departments made hiring decisions. For instance, it remains unlawful to discriminate based on gender, race, or other protected characteristics.

What if an AI violates the rules?

Even with these regulations in place, violations could still occur. If AI discriminates based on religion or a similar protected trait, who would be liable? Would the company using the AI be held responsible? Or could liability fall on the developers who built the language model in the first place?

These questions haven’t been fully answered yet and will likely need to be addressed by the state legislature. Lawmakers in California have been exploring bills that focus on algorithmic discrimination. It’s important to note that the regulations created by the California Civil Rights Department are not laws, and the department itself cannot take legal action if violations occur.

However, these guidelines aim to clarify how AI hiring must comply with the Fair Employment and Housing Act. Ultimately, it will be up to the courts to enforce these standards and determine who is liable if violations happen.

This is an emerging area of law, and it’s essential for all parties involved to understand their legal rights and options.