AI Firms Among Job Vendors Bracing for California Bias Lawsuits

Tuesday, September 12, 2023

Walter Stella was quoted in Bloomberg Law discussing a recent ruling from the California Supreme Court that states that third-party service providers can be subject to lawsuits under the state's Fair Employment and Housing Act for actions performed on behalf of employers. With this decision, California employers and their third-party service providers, including artificial intelligence vendors, could now face a host of litigation as the state's courts sort out the extent to which workers can sue such agents for discrimination. "The real concern is the cost of finding that answer, even if third-party agents win cases against them. Litigation still costs money. So if you’re getting sued where before you wouldn’t be getting sued, somehow that’s going to have to be paid for," said Walter.

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