California’s privacy regulator has adopted its first set of rules governing automated decision-making technology, including artificial-intelligence tools used in recruiting, performance reviews and other workplace functions. The regulations, finalized under the California Consumer Privacy Act, require companies to disclose when algorithms are applied, give job seekers and employees a right to opt out or request explanations, and mandate risk assessments of potential bias. The state action lands amid growing legal scrutiny of employment-focused AI. A developing lawsuit against enterprise software provider Workday alleges that its screening algorithms discriminate against applicants, while law firms warn that dueling federal and state directives are creating a patchwork of compliance obligations for employers. Labor attorneys say companies relying on machine-learning models should immediately audit their systems, document training data and prepare for possible bias challenges. Several firms have scheduled webinars ahead of the rules’ effective date to brief human-resources leaders on notice requirements, opt-out workflows and record-keeping duties.