Summary of New California AI Regulations Regarding the Use of AI in Employment Decision Making

New California Artificial Intelligence regulations (AI Regulations) adopted by the Civil Rights Council (Council) will be effective October 1, 2025. These regulations, which you can find here, are intended to protect candidates and employees against potential employment discrimination as a result of the use of AI, algorithms and other automated-decision systems. In adopting these regulations, the Council amended protections already afforded to candidates and employees under the California Fair Employment and Housing Act (FEHA) to define terms (discussed below) such as “automated-decision system,” “agent,” “employment agency,” “algorithm,” “artificial intelligence” and “machine learning.”

By way of background, the FEHA applies to employers with five or more employees. Employees located inside and outside of California are counted in determining whether employers are covered under the FEHA. If an employer engages in an unlawful employment practice that violates the FEHA, including a violation of the new AI Regulations as of October 1, 2025, then the complainant(s) or class of complainants are entitled to individual or personal relief, including, but not limited to, hiring, reinstatement or upgrading, back pay, or other relief in furtherance of the FEHA.

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State & Local Employment Law Developments: Q4 2024

This quarter, we continue to highlight the ever-changing state and local employment law landscape. New state laws that took effect during the fourth quarter of 2024 or as of January 1, 2025, continue to focus on increasing employee protections in Alabama, California, Colorado, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Oregon, Pennsylvania and Rhode Island.

To view the full alert, visit the Faegre Drinker website.

The New Year Brings a Legal Challenge to Minnesota’s Earned Sick and Safe Time Law

Airlines for America filed a complaint seeking a declaratory judgment and injunctive relief against the Minnesota Commissioner of the Department of Labor and Industry, holding that Minnesota’s earned sick and safe time (ESST) law is preempted by federal laws applicable to the airline industry. The asserted negative impacts of the recent change in Minnesota’s ESST law are not limited to airline industry employers, as all Minnesota employers covered by the ESST law must comply with its requirements.

To view the full alert, visit the Faegre Drinker website.

The Post-Chevron World: 2024 Overtime EAP Exemption Rule Vacated

The Eastern District of Texas recently vacated the 2024 EAP Exemption to the Overtime Rule. That means that the 2019 salary threshold of $684/week for EAP employees and annual salary threshold of $107,432 for highly compensated employees are now in effect again. Employers no longer need to plan for the additional automatic salary threshold increase that was scheduled to be effective on January 1, 2025, and are no longer required to adhere to the previous increase that went into effect on July 1, 2024.

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Responding to the Vacated FLSA Salary Threshold Rule

Employers should consider the employee relations impact of making any changes, even if permissible, to previously implemented or announced salary increases to maintain the exemption from federal overtime and minimum wage law. Employers may also be required to provide advance notice of any wage change under applicable state law. In this second alert, we answer some FAQs.

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Texas Court Sets Aside FTC Noncompete Rule, With Nationwide Effect

On August 20, 2024, the U.S. District Court for the Northern District of Texas issued a memorandum opinion and order holding that the Federal Trade Commission rule banning post-employment noncompetes is “unlawful” and therefore must be “set aside.” This alert covers what employers need to know.

For the full alert, visit the Faegre Drinker website.

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