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California FEHA regulations on automated decision systems (Civil Rights Council)

CAIn EffectHigh riskFor all AI companies
Effective
StatusIn Effect
Penalties (summary)No per-violation dollar amounts. Enforcement through FEHA litigation with uncapped compensatory damages, punitive dam…
Private right of actionYes

In effect since October 1, 2025.

California SB 7 (No Robo Bosses Act) is pending legislation that would add human oversight, opt-out, and appeal requirements on top of these regulations. AB 1018 would broadly regulate AI in consequential decisions including employment.

Overview

If you work in California or apply for a job there, your employer cannot use AI or automated systems in ways that discriminate against you. This covers hiring, promotions, pay, scheduling, and any other employment decision. The rules apply to any employer with 5 or more employees. If AI tools screen out people with disabilities, the employer must offer reasonable alternatives. Companies that test their AI for bias can use those results as evidence in their defense, but testing is not technically mandatory. You can file a complaint with the California Civil Rights Department or sue directly.

This is an AI-specific state law.

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California AI regulation guide lists every tracked rule for this jurisdiction with timelines and obligation tallies.

Who this applies to

This regulation applies to both companies that build AI products and companies that use AI tools from other vendors.

AI categories covered

  • Employment and hiring

Specific AI use cases:

  • Resume screening and ranking
  • Candidate assessment and scoring
  • Workforce scheduling and optimization

What this requires you to do

  • Bias Testing Required

    Bias Testing Required. Review this obligation in the source text.

  • Record Keeping Required

    Record Keeping Required. Review this obligation in the source text.

  • Prohibited practices

    Prohibited practices. Review this obligation in the source text.

Enforcement and penalties

No per-violation dollar amounts. Enforcement through FEHA litigation with uncapped compensatory damages, punitive damages, emotional distress, back pay, front pay, and attorneys' fees. Private right of action through CRD complaint process.

Private Right of Action

This rule allows private plaintiffs to bring claims directly, in addition to government enforcement.

Related regulations in California

Explore more rules in the same jurisdiction that may apply to your AI systems.

Source and verification

View source text

https://calcivilrights.ca.gov/employers/

Last verified:

Always verify current language and amendments at the official source.

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