Have you applied for a job recently? Many employers and hiring agencies are now using AI to narrow down the pool of candidates. The World Economic Forum estimates that 88% of companies screen candidates with AI. Some even use AI for initial job interviews.

While AI is faster, it’s prone to mistakes. Worse, it may unintentionally create situations where bias and discrimination open the door to valid discrimination complaints. Whether you’re a job applicant or company owner, it’s important to understand California’s laws regarding the use of AI in hiring.

Unintentional Bias Is Too Common With AI

Developers must share information regarding what their AI tools look for when making decisions. Still, unconscious bias is possible. Computers can only do what they’re told to do through the lines of code and training data. If the training data included unconscious bias, that same bias passes down to AI for decision-making.

A University of Washington study found that large-language model-driven AI showed the following biases:

• Black-sounding men’s names were less likely to be chosen, even when compared with Black female-sounding names.
• Resumes with a male’s name were chosen more often than those with a woman’s or Black-sounding name.
• Short resumes increased bias.

China’s iTutorGroup’s AI was programmed to screen out tutors over a certain age. Any job applicant aged 55 or older (female) or 60 or older (male) was automatically disqualified. The company was charged with age discrimination and had to pay $365,000. The company also opted to stop hiring U.S. applicants.

How does something like that happen? If a company uses dozens of resumes from current employees and the current staff has more workers under 30, AI assumes that workers over 30 are less suitable for the position. If the current workforce is 75% male vs. 25% female, AI assumes men are better candidates for the job. These assumptions must be eliminated during development and training.

California’s Laws Regarding AI in Hiring

In December 2025, the current president signed an executive order calling for a National Policy Framework for Artificial Intelligence. One goal was to repeal state AI regulations and adopt a single federal rule. An AI Litigation Task Force had to be set up within 30 days. 

Until federal laws are enacted, California is ahead with multiple laws that safeguard job applicants from bias and discrimination by AI tools.

AB 2013 was signed into law on September 28, 2024, and took effect on January 1, 2026. It requires data transparency for AI training. Developers must disclose which datasets are used and how they support the AI tool’s intended purpose. 

SB 53 builds on this by requiring transparency in the frameworks of frontier AI models. There are exemptions with SB 53, including cases where an employee report protects a whistleblower.

California’s Fair Employment and Housing Act (FEHA) enhances protections against bias or discrimination involving Automated Decision Systems (ADS). ADS cannot be used in ways that adversely affect your chances of securing an interview or job based on any protected characteristics.

• Age (40+)
• Color
• Disability
• Gender Identity
• Genetic Information
• Military Status
• National Origin
• Pregnancy
• Race
• Religion
• Sex
• Sexual Orientation

As you apply for jobs, sometimes questions are optional. Don’t feel that you must provide answers to questions about your veteran status, disability, gender, or race. You’re not obligated to share this information. If a question is not optional, then the company’s online job application is already problematic and should be reported. Other questions that you aren’t required to answer include:

• Access to social media accounts
• Answers to questions unrelated to your resume or anticipated job duties
• Private information like an SSN or credit history
• Questions that test emotional sensitivity or personal history
• Your age or anything that might signify how old you are (such as the year you graduated)
• Your marital status

Tips for Avoiding Lawsuits With Your Hiring Practices

It’s hard to deny that AI saves time. The World Economic Forum found that AI hiring tools reduced a company’s hiring expenses by 87.64%. It must be done in accordance with applicable laws, though, or you risk lawsuits.

Workday is one of two companies currently facing discrimination lawsuits. Workday’s AI hiring tool rejected an older Black male, leading to concerns from him and others that the system is biased against certain protected classes. Eightfold is facing a similar class-action lawsuit. 

Verify that the automated decision system complies with federal employment discrimination laws, including:

• Age Discrimination in Employment Act of 1967
• California’s AB 2013, Generative Artificial Intelligence Training Data Transparency
• California’s FEHA AI Regulations
• California’s Senate Bill 53, Transparency in Frontier Artificial Intelligence Act
• The Fair Labor Standards Act of 1938
• The Pregnant Workers Fairness Act
• The Rehabilitation Act of 1973
• Title I of the Americans With Disabilities Act of 1990
• Title II of the Genetic Information Nondiscrimination Act of 2008
• Title VII of the Civil Rights Act of 1967

When an applicant applies for the position, ensure the terms surrounding AI tools are clearly laid out so that there’s no confusion on what AI does and doesn’t do. Ask a vendor for anti-bias testing protocols to ensure that their AI tools apply the best practices to protect against discrimination and bias.

Avoid potential lawsuits by ensuring someone in your company makes all final decisions. Do not leave final decisions up to AI software. Your hiring expert needs to have the final say. You should also test the system monthly to ensure nothing changed and could be problematic.

Take the time to consult with an employment law specialist to ensure that the platform you use and the questions you ask are free of potential bias. Working with an employment law attorney offers a layer of protection that ensures you’ve done everything expected of you from a legal standpoint.

Tips for Job Applicants Who Believe Bias and Discrimination Impacted Their Changes

Pay close attention to job listings, as some are not legit and may be collecting personal information you intended to share only with the hiring company. Some listings on job-finding sites like Indeed or LinkedIn often redirect you to a recruiter in another country where AI laws are not the same. They’re still obligated to follow California’s AI laws, and you should hold them accountable.

Before you complete a job application online, make sure you’ve read and understand how and when AI tools are used. Ask for clarification if something is unclear. If the company refuses to provide you with this information, ask why. You’re legally entitled to AI-generated data as part of California’s consumer privacy laws. You have the right to access and control that information.

If you believe your rights were violated by AI screening tools when applying for or doing pre-screening interviews, let the attorneys at Shegerian-Conniff know. We’re happy to review the information and help you determine whether you have a valid complaint. If so, we’ll walk you through the next steps.