Effective Oct. 1, 2025, California’s Civil Rights Council has updated FEHA to cover AI-based employment tools,
broadly defining “automated decision systems” and treating them as employer agents. The rules require retaining
related records for four years and offer an affirmative-defense option for anti-bias testing. Even when unintentional,
disparate impacts on protected groups are prohibited. Employers must conduct bias audits, document testing, and
ensure human oversight of AI-facilitated decisions.

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