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min read
Published on
August 12, 2025

Ready for October 1: How Disclo Already Aligns with California’s New AI & Accommodation Rules

Updated on
August 12, 2025
U.S. flag and California flag

Table of contents

Overview of the new regulations

On June 27, 2025, California's Civil Rights Council officially approved significant amendments to the Fair Employment and Housing Act (FEHA). These changes, which become effective on October 1, 2025, create new, specific obligations for employers who use automated-decision systems (ADS) for hiring, promotion, or any other term of employment. The regulations are built around four key pillars: notice, accommodations, record retention, and bias mitigation.

For HR and legal teams, the clock is ticking. The good news? If you're a Disclo customer, your existing workflows are already designed to meet the core requirements of these new rules, particularly those concerning accommodations and record-keeping.

The new rules in plain English: What's required?

If your company uses an AI tool that measures anything potentially affected by a physical or mental disability, you must adhere to several new mandates. This includes software that analyzes:

  • Facial cues or speech in video interviews
  • Keyboard speed or response patterns in skills tests
  • Personality or cognitive abilities through gamified assessments

For these tools, employers are now required to:

  1. Provide notice: Clearly inform applicants and employees that an ADS is being used.
  2. Offer an "off-ramp": Give individuals the opportunity to request a reasonable accommodation or an alternative, non-automated assessment.
  3. Justify its use: Ensure that the criteria measured by the ADS are job-related and that no less-discriminatory alternative is available.

Mapping FEHA requirements directly to Disclo features

Disclo was built for transparency and human-centric workflows, positioning our customers ahead of the curve for the October 1 deadline. Here’s how our platform aligns with the new mandates:

FEHA requirement How Disclo meets it out-of-the-box
Advance notice of technology use Our platform and system emails are configured to explain what data Disclo collects and why, helping you satisfy notice obligations.
Accommodation “off-ramp” Every Disclo workflow contains a clear “Need help?” prompt, allowing individuals to flag a need. Case managers can instantly switch to a manual review process.
Human-in-the-loop decision-making Disclo has no automated “approve” or “deny” logic. The platform organizes information so that qualified human managers can make the final call, which is a core tenet of the new regulations.
Four-year record retention FEHA now requires employers to keep ADS-related records for a minimum of four years. Disclo’s audit log is immutable and automatically retained for a period exceeding this requirement, simplifying compliance.
Vendor liability mitigation We provide a SOC 2-aligned diligence packet, a bias-testing whitepaper, and optional indemnity language for customer contracts to help you meet vendor oversight responsibilities.

Your timeline & checklist for compliance

Use this simple timeline to ensure you are fully prepared by the deadline.

Date Action item
July–August 2025 Review communications: Audit your offer letters, career portals, and other applicant-facing communications. Add clear, simple language about the use of any automated systems in your process.
September 2025 Conduct a dry run: Run a tabletop exercise with your team. Export Disclo audit logs to confirm your process for accessing and reviewing records to demonstrate four-year retention readiness.
By October 1, 2025 Update internal policies: Formally update your HR and accommodation policies. Specifically reference that Disclo is used as a non-ADS workflow and documentation tool and clarify the escalation path for accommodation requests.

Frequently asked questions

1. Is Disclo considered an ADS under the new FEHA definition? No. Disclo is a workflow and documentation platform. It organizes information and automates communication, but it does not generate automated "accept" or "deny" decisions. Because final determinations are left to people, it falls outside the legal definition of an ADS.

2. Do we need to purchase a new module or add-on for FEHA compliance? No. Your existing Disclo workflows already incorporate the key features needed to align with the accommodation and record-keeping mandates of the new regulations. For customers wanting additional layers of protection, optional features like notice banners and enhanced bias-testing documentation are available.

3. What happens if we close an accommodation case? Do we still need to keep the record for four years? Yes. The four-year retention rule applies regardless of the case outcome. Disclo’s retention schedule defaults to more than four years automatically, so you don't have to worry about manually managing archival timelines.

A final thought

California’s new AI regulations are not designed to outlaw technology in HR but to enforce accountability. They demand transparency, robust accommodation safeguards, and documented human oversight. Disclo provides these essential guardrails from day one, allowing your team to focus on what truly matters: supporting your people, not drowning in paperwork.

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U.S. flag and California flagU.S. flag and California flag
U.S. flag and California flag

Ready for October 1: How Disclo Already Aligns with California’s New AI & Accommodation Rules

Overview of the new regulations

On June 27, 2025, California's Civil Rights Council officially approved significant amendments to the Fair Employment and Housing Act (FEHA). These changes, which become effective on October 1, 2025, create new, specific obligations for employers who use automated-decision systems (ADS) for hiring, promotion, or any other term of employment. The regulations are built around four key pillars: notice, accommodations, record retention, and bias mitigation.

For HR and legal teams, the clock is ticking. The good news? If you're a Disclo customer, your existing workflows are already designed to meet the core requirements of these new rules, particularly those concerning accommodations and record-keeping.

The new rules in plain English: What's required?

If your company uses an AI tool that measures anything potentially affected by a physical or mental disability, you must adhere to several new mandates. This includes software that analyzes:

  • Facial cues or speech in video interviews
  • Keyboard speed or response patterns in skills tests
  • Personality or cognitive abilities through gamified assessments

For these tools, employers are now required to:

  1. Provide notice: Clearly inform applicants and employees that an ADS is being used.
  2. Offer an "off-ramp": Give individuals the opportunity to request a reasonable accommodation or an alternative, non-automated assessment.
  3. Justify its use: Ensure that the criteria measured by the ADS are job-related and that no less-discriminatory alternative is available.

Mapping FEHA requirements directly to Disclo features

Disclo was built for transparency and human-centric workflows, positioning our customers ahead of the curve for the October 1 deadline. Here’s how our platform aligns with the new mandates:

FEHA requirement How Disclo meets it out-of-the-box
Advance notice of technology use Our platform and system emails are configured to explain what data Disclo collects and why, helping you satisfy notice obligations.
Accommodation “off-ramp” Every Disclo workflow contains a clear “Need help?” prompt, allowing individuals to flag a need. Case managers can instantly switch to a manual review process.
Human-in-the-loop decision-making Disclo has no automated “approve” or “deny” logic. The platform organizes information so that qualified human managers can make the final call, which is a core tenet of the new regulations.
Four-year record retention FEHA now requires employers to keep ADS-related records for a minimum of four years. Disclo’s audit log is immutable and automatically retained for a period exceeding this requirement, simplifying compliance.
Vendor liability mitigation We provide a SOC 2-aligned diligence packet, a bias-testing whitepaper, and optional indemnity language for customer contracts to help you meet vendor oversight responsibilities.

Your timeline & checklist for compliance

Use this simple timeline to ensure you are fully prepared by the deadline.

Date Action item
July–August 2025 Review communications: Audit your offer letters, career portals, and other applicant-facing communications. Add clear, simple language about the use of any automated systems in your process.
September 2025 Conduct a dry run: Run a tabletop exercise with your team. Export Disclo audit logs to confirm your process for accessing and reviewing records to demonstrate four-year retention readiness.
By October 1, 2025 Update internal policies: Formally update your HR and accommodation policies. Specifically reference that Disclo is used as a non-ADS workflow and documentation tool and clarify the escalation path for accommodation requests.

Frequently asked questions

1. Is Disclo considered an ADS under the new FEHA definition? No. Disclo is a workflow and documentation platform. It organizes information and automates communication, but it does not generate automated "accept" or "deny" decisions. Because final determinations are left to people, it falls outside the legal definition of an ADS.

2. Do we need to purchase a new module or add-on for FEHA compliance? No. Your existing Disclo workflows already incorporate the key features needed to align with the accommodation and record-keeping mandates of the new regulations. For customers wanting additional layers of protection, optional features like notice banners and enhanced bias-testing documentation are available.

3. What happens if we close an accommodation case? Do we still need to keep the record for four years? Yes. The four-year retention rule applies regardless of the case outcome. Disclo’s retention schedule defaults to more than four years automatically, so you don't have to worry about manually managing archival timelines.

A final thought

California’s new AI regulations are not designed to outlaw technology in HR but to enforce accountability. They demand transparency, robust accommodation safeguards, and documented human oversight. Disclo provides these essential guardrails from day one, allowing your team to focus on what truly matters: supporting your people, not drowning in paperwork.

Curious to see how accommodations can support your employees?

Schedule a free demo today.
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