U.S. states · Enacted
N.J.A.C. 13:16: Division on Civil Rights rules on disparate impact discrimination, including automated employment decision tools
Verified Checked against its sources on 3 sources quoted
- Jurisdiction
- New Jersey
- Bill or instrument
- N.J.A.C. 13:16 (R.2025 d.150; adoption notice 57 N.J.R. 2840(b))
- Status
- Rules adopted; in force (agency regulation)
- Enacted
- November 5, 2025
- Effective
- December 15, 2025
- Applies to
- Employers, housing providers, lenders, places of public accommodation and contracting parties covered by the LAD, including users of vendor-built automated tools
- Sectors
- Employment; housing; financial lending; public accommodation; contracting
- Enforcement
- Division on Civil Rights and the courts under the LAD
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
- November 5, 2025Enacted
- December 15, 2025Takes effect
- October 16, 2026Checked against sources
- October 19, 2026Checked against sources
- 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.
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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
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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
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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
Suggested citation. Eminence Scan, “N.J.A.C. 13:16: Division on Civil Rights rules on disparate impact discrimination, including automated employment decision tools”, Eminence Growth Solutions, last verified October 21, 2026, https://eminencegrowthsolutions.com/tools/eminence-scan/record/state-088/.
Using our research: you may read and quote Eminence Scan with credit to “Eminence Scan, Eminence Growth Solutions” and a link; all other rights reserved. Terms: Using our research.
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