Beginning October 1, 2025, California employers must comply with new Fair Employment and Housing Act (FEHA) regulations on the use of artificial intelligence (AI) and automated decision systems in hiring and employment. The rules primarily pertain to three compliance areas: bias testing, recordkeeping, and vendor liability. Employers should start preparing now to avoid exposure once the rules take effect.
Class action litigation brought under the Fair Credit Reporting Act (FCRA) is on the rise—particularly in California—after the US Court of Appeals for the Ninth Circuit issued a 2017 decision applying a hypertechnical approach to the FCRA’s disclosure requirements. Background checks are an integral part of the hiring process, but they open employers up to lawsuits for noncompliance with disclosure or adverse action requirements. Plaintiffs’ firms are turning their attention to these cases because of the potential for statutory and actual damages, punitive damages, costs and attorneys’ fees. In our recent webinars, we discussed strategies to help employers avoid and defend these claims.
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