{"id":298983,"date":"2025-06-17T14:11:59","date_gmt":"2025-06-17T14:11:59","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/new-ai-hiring-rules-and-lawsuits-put-employers-on-notice-what-hr-needs-to-know-employers-lawyers-blog\/"},"modified":"2025-06-17T14:11:59","modified_gmt":"2025-06-17T14:11:59","slug":"new-ai-hiring-rules-and-lawsuits-put-employers-on-notice-what-hr-needs-to-know-employers-lawyers-blog","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=298983","title":{"rendered":"New AI Hiring Rules and Lawsuits Put Employers on Notice: What HR Needs to Know | Employers’ Lawyers Blog"},"content":{"rendered":"


\n<\/p>\n

\n
\"\"<\/p>\n

Adam Bouka<\/p>\n<\/div>\n

By\u00a0Adam Bouka<\/a><\/p>\n

Artificial Intelligence (AI) is transforming how companies find, evaluate, and hire talent\u2014but it\u2019s also raising red flags among regulators and courts. Two big developments in May 2025 show that HR teams must take a closer look at their hiring tools<\/strong> to avoid legal and compliance risks.<\/p>\n

Let\u2019s break it down.<\/p>\n

What\u2019s Happening in California?<\/strong><\/p>\n

California is preparing to implement new civil rights regulations that are likely to impact the use of automated decision-making systems (ADSs) in employment and other state-supported programs. These rules\u2014expected to take effect as soon as July 1, 2025\u2014aim to prevent discrimination based on protected characteristics such as race, gender, age, disability, or religion. While the regulations don\u2019t ban AI tools outright, they make it unlawful to use any system, automated or not, that results in discriminatory outcomes.<\/p>\n

What Counts as Discriminatory?<\/strong><\/p>\n

The new rules target AI tools that analyze candidates\u2019 voices, facial expressions, personality, or availability\u2014especially if those tools lead to biased outcomes.<\/p>\n

Example: If an AI tool interprets not smiling during a video interview as a sign of unfriendliness, that could unfairly penalize candidates from cultures where smiling less is common.<\/p>\n

Bottom line: If an AI tool results in different outcomes for people in protected groups, it could violate the law\u2014even if there\u2019s no intent to discriminate.<\/p>\n

What About the Workday Lawsuit?<\/strong><\/p>\n

At the same time, a major collective action lawsuit against Workday, the popular HR tech provider, is moving forward in federal court. The claim? That its AI-powered hiring software discriminated against applicants over age 40.<\/p>\n