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California to Increase Regulation of AI Tools In The Workplace: New Legal Liability

The rapid integration of AI in the workplace has led California regulators to propose new rules governing its use in employment decisions, addressing concerns about potential biases and legal liabilities. Click here for article.

Regulatory Proposals:

  • California’s Civil Rights Council proposed rules to ensure AI decision-making does not harm applicants or employees based on protected characteristics, and requires retention of relevant employment records for at least four years.

Liability and Individual Assessment:

  • Employers must still perform individualized assessments of applicants' criminal histories despite using AI, and both employers and AI providers can be liable for discrimination.

Third-Party Responsibilities:

  • Third parties are prohibited from aiding employment discrimination through AI design or implementation, making them equally accountable for any resulting biases.

Examples of Unlawful Practices:

  • The regulations provide examples of potentially unlawful AI assessments, emphasizing the need for employers to consult with legal counsel to mitigate litigation risks.

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