N.J.A.C. 13:16: Division on Civil Rights rules on disparate impact discrimination, including automated employment decision tools

Summary

The Division on Civil Rights adopted rules codifying disparate impact liability under the Law Against Discrimination across employment, housing, places of public accommodation, financial lending and contracting. The rules explain how disparate impact analysis applies to AI and other automated decision tools in hiring, such as automated online application tools and facial analysis software. Where a practice that causes a disparate impact relies on an outside person's or vendor's conduct, products or systems, the covered entity must take reasonable steps to ensure they are consistent with the law (N.J.A.C. 13:16-2.4(e)); on adoption the Division deleted a proposed example about employee selection algorithms built by technology companies and said reasonable steps are not a complete defense. An automated employment decision tool that screens applicants on their schedule must include a way to request a reasonable accommodation. The Attorney General states the rules clarify existing law rather than creating new liability.

Key dates

1. November 5, 2025Enacted
2. December 15, 2025Takes effect
3. October 16, 2026Checked against sources
4. October 19, 2026Checked against sources
5. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: October 19, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. Adopted: November 5, 2025, by Yolanda N. Melville, Director, Division on Civil Rights. Filed: November 6, 2025, as R.2025 d.150

   Supports: Adoption and filing

   Effective Date: December 15, 2025. Expiration Date: December 15, 2032.

   Supports: Effective and expiration dates

   the respondent must take reasonable steps to ensure that the outside vendor’s conduct, standards, products, procedures, or systems are consistent with the LAD

   Supports: Vendor responsibility

   Consistent with the comments, the Division amends N.J.A.C. 13:16-2.2(l) (now included at N.J.A.C. 13:16-2.4(e)) to remove the example in the proposed rules, which stated:

   Supports: Employee-selection-algorithm example removed on adoption

   taking reasonable steps is not a complete defense against discrimination if they do not prevent or mitigate disparate impact discrimination.

   Supports: Reasonable steps not a complete defense

   applicants based on their religion, disability, or medical condition and must include a mechanism for applicants to request a reasonable accommodation.

   Supports: AEDT schedule screens must offer an accommodation mechanism

   Notice of Adoption, N.J.A.C. 13:16-3.2(c)2 New Jersey Division on Civil Rights (New Jersey Register notice of adoption) Primary source

2. The rules adopted today also explains how disparate impact liability applies to the use of artificial intelligence (AI) and other automated decision-making tools in the employment context.

   Supports: AI and automated tools coverage

   address disparate impact discrimination in employment, housing, places of public accommodation, financial lending, and contracting

   Supports: Sectors including financial lending

   AG Platkin Announces Division on Civil Rights Adopts Landmark Rules on Disparate Impact Discrimination Under New Jersey Law New Jersey Office of the Attorney General Primary source

3. R.2025 d.150, effective December 15, 2025. See: 56 N.J.R. 969(a), 56 N.J.R. 2218(a), 57 N.J.R. 2840(b).

   Supports: the Register citations: proposal, changes and adoption notice

   N.J.A.C. 13:16, Disparate Impact Discrimination (codified chapter, courtesy copy) New Jersey Division on Civil Rights (njoag.gov) Primary source