AI Firms Among Job Vendors Bracing for California Bias Lawsuits

California employers and their third-party service providers—including artificial intelligence vendors—are now exposed to a host of litigation as the state’s courts sort out the extent to which workers can sue such agents for discrimination.

The California Supreme Court recently held that workers can sue third-party providers under the state’s Fair Employment and Housing Act for actions performed on behalf of employers.

The high court ruling came in response to a question posed to it by a US appeals court in a case involving job applicants who said they’d been asked improper personal questions as part of a health screening by ...