Artificial intelligence is rapidly transforming the modern workplace. From resume screening and automated interview analysis to employee monitoring and performance evaluations, AI tools are helping employers streamline operations and reduce administrative burdens. As businesses increasingly rely on automation to make employment decisions, New Jersey employment law is evolving to address the legal and ethical risks that come with it.
How Is AI Used for Hiring?
For both employers and employees, understanding how AI intersects with workplace rights is becoming essential.
One of the biggest concerns surrounding AI in employment is algorithmic discrimination. Many AI systems are trained using historical workplace data. If that data reflects past hiring biases or discriminatory practices, the technology may unintentionally replicate those same patterns. Studies and legal experts have warned that automated hiring tools can disproportionately impact applicants based on race, gender, age, disability, or other protected characteristics.
How Are New Jersey Employees Protected Against Algorithmic Discrimination?
New Jersey regulators have made it clear that existing anti-discrimination laws apply to AI-driven employment decisions. In January 2025, the New Jersey Attorney General and Division on Civil Rights issued formal guidance stating that the New Jersey Law Against Discrimination (NJLAD) applies to “algorithmic discrimination” in the same way it applies to traditional discriminatory conduct.
Under the NJLAD, employers may still face liability even if discrimination results from an automated decision-making system rather than a human manager. This means businesses cannot simply blame software vendors or AI platforms for biased outcomes. Employers are expected to monitor and evaluate the tools they use to ensure compliance with state and federal employment laws.
What Are Other Concerns About AI in the Workplace?
The use of AI raises significant concerns about employee privacy. Many companies have implemented AI-powered monitoring systems to track productivity, keystrokes, communications, or online activity. Although employers often justify these tools as methods for improving efficiency and security, excessive surveillance can create legal risks and damage workplace trust.
New Jersey employees may have protections when workplace monitoring becomes overly intrusive or lacks proper disclosure. Legal commentators note that employers should provide clear notice regarding what information is being collected, how it will be used, and whether automated systems are involved in employment-related decisions.
How Do I Know if My Employer Is Using AI?
Transparency is another emerging issue regarding artificial intelligence and the workplace. Across the country, lawmakers are increasingly pushing for regulations that require companies to disclose when AI tools are being used in hiring and personnel decisions. New York City’s Local Law 144, for example, requires bias audits and notice requirements for certain automated employment decision tools. Although New Jersey has not yet enacted identical legislation, legal analysts expect similar regulatory efforts to continue gaining momentum.
Protecting Your Rights
As AI regulation develops, employers in New Jersey should consider implementing proactive safeguards. This may include conducting independent audits of hiring algorithms, reviewing vendor contracts carefully, maintaining human oversight over employment decisions, and documenting how AI systems are evaluated for fairness and compliance. Legal experts consistently warn that relying exclusively on automated systems without proper oversight can significantly increase exposure to discrimination claims.
Employees, meanwhile, should remain aware of their rights. If an applicant believes an AI-driven hiring system unfairly screened them out, or if an employee suspects that automated evaluations are producing discriminatory outcomes, they may have grounds to pursue legal action under NJLAD or federal anti-discrimination laws. Courts and regulatory agencies are increasingly examining whether employers can be held accountable for biased AI systems used in hiring, promotions, discipline, and termination decisions.
As employment law adapts to this rapidly changing technology, both businesses and workers should stay informed about their rights and obligations. Employers that proactively address AI-related risks may reduce potential liability, while employees who understand the protections available under New Jersey law can better safeguard themselves against unfair treatment in an increasingly automated workplace.
South Jersey Employment Lawyers at The Law Offices of Leo B. Dubler, III, LLC, Provide Experienced Counsel Regarding AI in the Workplace
Whether you are an employee facing unfair treatment or an employer seeking guidance on workplace compliance, staying ahead of evolving AI-related employment laws is critical. The South Jersey employment lawyers at The Law Offices of Leo B. Dubler, III, LLC, can provide the experienced counsel you need. You can schedule a free initial consultation with our office by messaging us online or by calling us today at 856-235-7075. With offices in Mount Laurel and Atlantic City, New Jersey, we proudly serve clients in the surrounding areas.