2026-Compliant Protection Against AI Bias Lawsuits, DFEH Audits & CPRA Fines

At the Law Offices of Eric A. Boyajian, APC (LOEAB), we help California companies safely navigate AI in hiring (e.g., ATS like Eightfold/HireVue), performance reviews, customer service (ChatGPT/Claude), and monitoring tools — ensuring full compliance with DFEH/CRD Automated Decision-Making Regulations (effective Oct 2025/July 2026), CPPA ADMT Rules (Jan 1, 2026), EEOC disparate impact guidelines, NLRB Section 7 protections (Abruzzo Memo GC 23-02), NYC Local Law 144, and Illinois HB 3773 (Jan 1, 2026).

One AI lawsuit can cost $1M–$20M+ (e.g., EEOC's $365k iTutorGroup age bias settlement; Mobley v. Workday collective action certified 2025 for older/disabled applicants). CPRA fines hit $7,500 per violation for profiling/automated decisions affecting employment. DFEH now prohibits ADS causing FEHA discrimination (race, age, disability, etc.) without bias audits and human override. Don't risk it — our packages prevent enforcement while letting you use AI productively.

What’s Included in Our AI Policy & Compliance Package

• Acceptable Use of AI Master Policy Suite (custom to your industry) Generative AI rules (ChatGPT Enterprise, Gemini, Copilot) with mandatory labeling, audit trails, and "memory off" requirements.
  Prohibited inputs (confidential data, PII under CPRA). Ownership of AI outputs as work-for-hire.
  

• AI Hiring & ADS Compliance Review (NYC LL144/CA DFEH/CPPA aligned)Bias/adverse impact audits for ATS, resume screeners, video interviews (HireVue, Paradox). FEHA risk assessment + opinion letter (4-year record retention required). Pre-use notices, opt-out rights, and "logic of decision" disclosures (CPPA ADMT).
  

• Tailored Manager & HR Training (SB 1343/SB 396 credit-eligible, 60–90 min)Live/recorded sessions on bias detection, accommodations (disability/religion), NLRB monitoring rules. Certification quizzes + bystander intervention for harassment via AI.
  

• AI Vendor Contract Addendums  Indemnity for bias/discrimination claims (vendor pays). CCPA/CPRA data processing agreements (DPIA rights, no training on your data). Audit/transparency clauses (NYC/IL/CA compliant).
  

• Enterprise Governance Add-On  (50+ employees) AI Ethics Committee charter, incident response playbook, annual risk assessments (due Dec 31, 2027 for pre-2026 processing). NLRB-compliant monitoring disclosure (no interference with Section 7 organizing).

Why California Businesses Choose LOEAB for AI Compliance

• Proven in 2025–2026 Enforcement Wave — We've audited tools pre-DFEH/CPPA effective dates, saving clients from 7-figure exposures.

• Flat-Fee, No Surprises — Predictable pricing; most pay in 1 invoice (insurers often reimburse as "risk management").

• Lightning-Fast Delivery — Policies + training ready before deadlines; one revision round included.

• Litigation Armor — Our suites have defeated DFEH inquiries; include human override to satisfy "not fully automated" exemptions.

2026 Deadlines Crushing Employers: CPPA risk assessments (Jan 1, 2026; submit summaries by Apr 2028); DFEH ADS bias rules (now); IL/NYC notices (Jan 2026). Insurance excludes AI claims without policies/training. 

83% of firms plan AI hiring in 2026 — get ahead or get sued.

Leverage AI Responsibly. Avoid the Lawsuits. Trust LOEAB — Your California AI Employment Shield.