What's Happening?
The Civil Rights Department (CRD) is set to enforce new regulations on October 1, 2025, aimed at preventing discriminatory employment decisions made through automated decision systems (ADS). These regulations will require employers to maintain records related to ADS data for four years and hold them accountable for third-party vendors using ADS technology. The regulations define ADS broadly, covering technologies that make predictive assessments, evaluate biometric information, or assist in candidate screening. Employers have six weeks to comply with these regulations, which include implementing protocols for record retention and conducting regular audits to identify potential shortcomings.
Why It's Important?
These regulations are significant as they expand the scope of unlawful discrimination protections in the workplace, potentially affecting a wide range of industries that rely on AI for hiring and employment decisions. Employers must now ensure compliance with record-keeping requirements and be vigilant about the ADS technologies used by third-party vendors. Failure to comply could result in legal liabilities, emphasizing the need for companies to audit their systems and vendor agreements. This move reflects a growing trend towards increased scrutiny and regulation of AI technologies in employment, aiming to safeguard against biases and discrimination.
What's Next?
Companies must act swiftly to align their practices with the new regulations before the October deadline. This includes establishing robust record retention protocols and auditing ADS technologies to mitigate risks of discrimination claims. Legal and compliance teams will need to work closely with vendors to ensure contractual agreements address financial responsibilities arising from ADS-related claims. The CRD's Privacy Practice Group will continue monitoring updates on AI and privacy issues impacting employers, providing guidance to ensure compliance.
