Remote AI Hiring? New California AI Employment Rules Effective in Oct 2025

Discrimination is discrimination, no matter what form it takes. If you have been discriminated against by a prospective employer due to the usage of artificial intelligence in the hiring process, the discrimination lawyers in Los Angeles County at Skapik Law Group can take action on your behalf. 

There are often gray areas involved when AI is used in new areas. Employers have recently turned to AI for help with employee recruitment. This practice has led to discriminatory impacts that have affected categories of workers who are in a protected class. Recently, California has introduced new rules that clarify when the use of AI in employment can be discriminatory in nature.

Get a free initial consultation with a Los Angeles County employment attorney at Skapik Law Group by calling us at (909) 398-4404, where you can find out whether your particular situation is an actionable legal offense. Our employment lawyers keep abreast of recent legal developments and new rules that could impact your potential right to compensation. 

Increased Efficiencies in Hiring Have Come at a Cost

The use of artificial intelligence has allowed employers to take advantage of increased efficiencies in a manner that can both streamline hiring and cut costs. However, this type of progress has come at a cost. The use of artificial intelligence in hiring has introduced and perpetuated certain modes of discrimination. With that in mind, California has issued new rules that apply to the use of artificial intelligence in hiring both on-site and remote workers. 

Statistics show that more employers are turning to AI at some point in the recruiting or hiring process. There is one estimate that roughly two-thirds of employers will use some form of an AI tool in the hiring process. Employers often use AI in screening job applicants and reviewing their resumes. These days, applicants may not even have a human make the initial screening. An AI algorithm may look for certain keywords or characteristics of the resume to decide which candidates are suitable for referral to a hiring manager.

The problem is that the use of AI in hiring can involve discrimination. Algorithms often involve the use of past data to predict the future. Past data necessarily relies on potentially discriminatory practices. Even if an AI algorithm attempts to remove any type of bias that affects a protected class, discrimination can still be perpetuated through the use of certain educational requirements and zip code data. The problem is that employers rely on these black box formulas that do not figuratively “show their work.” When an employer makes decisions based on these results, they can be committing acts of discrimination, whether they intend to or not.

How California Is Addressing Discriminatory Hiring Practices from the Use of AI

California has recently instituted new rules with the intent of providing clarification and direction for employers who use AI in the hiring process. These rules apply in any instance in which an employer is using an ”automated decision system” in the recruiting and hiring process. The rule clarifies that it can still be considered discrimination under California’s Fair Employment and Housing Act if the use of an ADS leads to a discriminatory result. 

One of the most salient features of this new rule is the fact that there can still be discrimination if an employer uses a proxy for a protected class as an input to the ADS. If this proxy is closely correlated to a protected class, and it leads to discriminatory results, it can be considered discrimination in itself. Further, the new rules also make it clear that judging applicants by certain skills or traits that could potentially correlate with a disability also constitutes discrimination.

To be clear, a business may still use AI in its recruitment process. If there is a discriminatory impact of this usage, the business must be prepared to show that the adverse impact has a job-related purpose, and it is consistent with business necessity. The business would present this defense if they are subject to an enforcement action or lawsuit due to discrimination.

If you have been discriminated against in the hiring process, whether it is a result of the use of AI, or for other reasons, you may be able to file a lawsuit against the employer. You must be prepared to overcome any justifications that the employer uses to justify their use of the algorithm and show why it does not have a job-related or business knowledge.

Contact a Los Angeles County Employment Lawyer Today

Protect your legal right to be free from discrimination by contacting a Los Angeles County employment attorney at Skapik Law Group. We can review your case during the course of a free initial consultation, which you can schedule by sending us a message online or by calling us today at (909) 398-4404.