Source: SHRM

SHRM details new regulations in California aimed at banning discriminatory AI systems in employment. The proposed rules, published in May 2025, are designed to prevent bias in automated decision-making tools used for hiring, promotions, and other workplace practices. Employers will be required to audit AI systems for discriminatory outcomes and ensure transparency in their application. The regulations mandate that companies document how AI is used in HR processes and provide affected individuals with information about how decisions are made.

Noncompliance may lead to penalties and legal liability for discriminatory practices. The article notes that the new rules reflect growing concern about algorithmic bias and its impact on workplace equity. Employers are urged to consult legal counsel and update internal policies to align with these compliance requirements. The move is expected to set a precedent for other states and influence national discussions on the ethical use of AI in employment.