San Diego Associate Amanda H. Herron was quoted in an article entitled "California High Court Holds AI Vendors Liable for Biased Job Screening," published by Law.com.
This article explores the California Supreme Court’s decision in Raines v. U.S. Healthworks Medical Group, August 21, 2021, California Supreme Court Case No. S273630 (“Raines”), a landmark ruling that could have major implications for the AI industry. After Raines, business agents that perform employment-related services for California employers may be directly liable for discrimination under the Fair Employment Housing Act (“FEHA”), even where the agents do not employ California workers themselves. Recruitment agencies, placement agencies, screening companies, and artificial intelligence vendors that use algorithms to target job ads, screen out applicants, or perform other employment-related tasks may be directly liable for discrimination under state law.
Ms. Herron said the ruling could be viewed as a departure from the court’s prior decisions, where it declined to hold individual agents acting on behalf of their employers directly liable for discrimination and retaliation under FEHA. After Raines, because business-entity agents of prospective employers can be sued for employment discrimination, "it seems like it will double the number of defendants who can be named in these FEHA suits."
Ms. Herron is an attorney who is licensed to practice in California and Florida. Her practice focuses on representing employers in administrative and civil claims for wrongful termination, discrimination, harassment, retaliation, and alleged wage and hour violations. She provides corporate counseling to employer clients regarding best practices and compliance with the goal of advising clients on how to avoid future litigation. If you have questions about this decision or any other legal developments, please contact the Gordon & Rees Employment Law team for more information.
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