Employment software that uses AI decision-making could be a new source of legal liability for organizations in California, according to a recent article by Brandon Vigliarolo in The Register.
In a recently proposed amendment to California's hiring discrimination laws, it would be “illegal for businesses and employment agencies to use automated-decision systems to screen out applicants who are considered a protected class by the California Department of Fair Employment and Housing.”
The broad language of the proposal could make the law easily applicable to other software and methods used in employment decisions.
More than 90% of businesses use software to rank and filter job candidates - so the implications of the law would be far-reaching.