Navigating AI, Algorithms & Employment Law in California

Artificial intelligence and algorithmic tools are transforming the workplace — from hiring and employee monitoring to scheduling, performance management, discipline and termination decisions. This powerful technology increases efficiency, but creates significant potential legal risks for California employers, especially as new laws, regulations, and court decisions emerge at both the state and federal levels and overlap with Privacy laws such as the CCPA.

Defending and Advising California Employers on AI Use

CDF Labor Law LLP helps employers implement, audit, and defend the use of AI, algorithms, and automated systems in the workplace. We counsel employers on compliance with California’s unique employment laws, as well as related federal and emerging regulatory frameworks that govern algorithmic decision-making.

Our attorneys are experienced in addressing disputes and compliance challenges related to:

• AI-driven hiring and applicant screening practices
• Providing appropriate notices and record keeping recommendations
• Disparate impact claims
• Employee privacy, monitoring, and workplace surveillance technologies
• Wage and hour risks arising from algorithm-based scheduling tools
• Defending against PAGA and class action claims
• EEOC and DFEH investigations

Proactive Guidance and Litigation Experience

Our AI practice integrates with our Privacy practice to combine deep knowledge of California labor and employment law with a forward-looking approach to technology regulation. We help employers:

• Assess workplace AI systems for potential bias and compliance risks
• Review vendor contracts and algorithmic tool agreements to mitigate liability
• Develop notices, policies, record keeping methodologies and disclosures regarding AI use
• Defend employers from litigation and agency enforcement actions
• Monitor regulatory changes in California and nationwide, to help compliance with new rules

Protecting Your Business in a Rapidly Evolving Landscape

Be aware that enforcement agencies are signaling their intent to hold employers accountable for discriminatory or unlawful impacts of algorithmic tools.

CDF helps employers stay ahead of this curve by blending proactive compliance strategies with robust defense capabilities. Whether advising on implementation or defending against claims, our attorneys ensure that your use of AI protects your business, your workforce, and your reputation.

California’s Emerging AI Framework

California is expected to remain at the forefront of AI regulation and enforcement. From proposed legislation regulating algorithmic hiring tools to existing obligations under FEHA, CFRA, CCPA, and wage and hour laws, the risks are real and growing, particularly as technological changes continue to outpace regulations.

As Counsel to California Employers™, CDF provides employers with the guidance and defense they need to confidently integrate AI into their workplaces while avoiding costly litigation and penalties.