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ARTICLE · 07 AUGUST 2026

A Guide For New Jersey Employers On AI + Workplace Algorithmic Discrimination Risks

Jackson Lewis P.C.
Jackson Lewis P.C.
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Jackson Lewis P.C.

Jackson Lewis P.C.

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The New Jersey Division on Civil Rights has issued guidance clarifying that the state's Law Against Discrimination applies equally to employment decisions made with AI assistance, holding employers accountable for algorithmic bias. This development joins a growing regional trend of AI regulation in employment, with New York City, Connecticut, and other states implementing comprehensive oversight requirements for automated decision-making tools.

United StatesEmployment and HR

In January 2025, the New Jersey Division on Civil Rights (DCR) issued guidance explaining the New Jersey Law Against Discrimination (LAD) applies equally to decisions made with the assistance of artificial intelligence (AI). Employers cannot avoid liability because an algorithm, not a person, made or influenced an employment decision is the message.

What Is Algorithmic Discrimination?

Algorithmic discrimination occurs when an automated decision-making tool results in discrimination based on a protected characteristic, such as race, sex, age, disability, religion, national origin, or another classification protected under the LAD. According to the DCR, these tools include technologies that use AI, machine learning, or predictive analytics to assist with employment decisions.

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