California AI Employment Regulations Taking Effect October 1, 2025
What You Need to Know
The California Civil Rights Council has adopted comprehensive rules that apply to all employers using AI or automated tools in employment decisions, regardless of company size or industry. These regulations will impact companies using their own AI systems or third-party HR technology products.
Key Requirements
Notice Requirements: Provide clear, advance notice to employees and applicants about:
The use of AI/ADS tools in employment decisions
What kind of decisions may be affected
The right to request human review
Bias Testing: Routinely test for both intentional and unintentional bias; remediate if bias is detected.
Documentation: Maintain records for at least four years, including:
Tool design documentation
Monitoring procedures
Bias testing results
Mitigation efforts
Vendor Management: Ensure contracts with vendors include documentation requirements, audit rights, and indemnification provisions.
Human Review: Allow employees or applicants to request human review of decisions made or influenced by an ADS.
Recommended Action Steps
Inventory all AI/ADS tools used in your employment processes (recruiting, performance evaluation, promotion decisions)
Implement required notices for job postings, applications, and employee communications
Establish bias testing protocols and documentation systems
Review and update vendor contracts to ensure compliance and appropriate risk allocation
Train HR personnel on these requirements and how to explain AI tools to employees when requested
How We Can Help
Our team is prepared to assist you with:
Auditing your current AI/ADS usage
Drafting compliant notices for job descriptions and applications
Reviewing vendor contracts
Developing recordkeeping systems
Training your HR team on compliance requirements