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ARTICLE · 08 OCTOBER 2025

California Adopts Cutting-Edge AI Hiring Regulations

Barnes & Thornburg LLP
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Effective Oct. 1, 2025, California employers will face new compliance obligations when using artificial intelligence in hiring, promotion and other personnel decisions.

United StatesTechnology
John F. Kuenstler
John F. Kuenstler
Justin Ruedaflores
Justin Ruedaflores
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Bottom Line

Effective Oct. 1, 2025, California employers will face new compliance obligations when using artificial intelligence in hiring, promotion and other personnel decisions. The California Civil Rights Department (CRD) has finalized regulations confirming that automated decision systems (ADS) are subject to the Fair Employment and Housing Act (FEHA)—placing artificial intelligence (AI) on equal footing with human decision-making when it comes to anti-discrimination enforcement.

Employers should be prepared to show that their use of AI tools complies with FEHA by documenting bias testing, maintaining appropriate records, and ensuring meaningful human oversight. These rules represent a significant shift in how technology-driven employment practices will be evaluated, and they are expected to influence standards nationwide.

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