California Protects Employers Conducting Bias Mitigation Training

California Senate Bill 303 (“SB 303”) took effect on October 1, 2025, aiming to provide legal protection for employers conducting bias mitigation training. The bill establishes a “safe harbor” provision, clarifying that employees’ good-faith acknowledgment of personal bias during training does not constitute discriminatory conduct. It also encourages employers to proactively implement such training and restores the DLSE’s enforcement authority, reinforcing California’s institutional commitment to a diverse, equitable, and inclusive workplace.

If you or your company require support with employee policy compliance, please contact the ILS legal team at contact@consultils.com. ILS team combine strategic insight, swift action, and practical solutions to identify core issues, drive efficient resolutions, and protect our clients’ interests.

Background Overview

Despite widespread recognition that unconscious bias training can improve workplace culture and reduce discrimination, some employers feared that requiring employees to assess or acknowledge their own biases could paradoxically create liability under anti-discrimination laws. This has created a chilling effect, with some employers limiting or avoiding bias training programs altogether to minimize potential legal exposure

Senate Bill No. 303 emerged in response to this growing concern among California employers about the legal risks associated with implementing comprehensive bias mitigation and diversity training programs. 

On October 1, 2025, Governor Gavin Newsom approved Senate Bill No. 303 (Smallwood-Cuevas), which adds Section 12940.2 to the Government Code. This legislation provides crucial protections for employers who conduct bias mitigation training by clarifying that an employee's good faith assessment, testing, admission, or acknowledgment of personal bias during such training does not, by itself, constitute unlawful discrimination under the California Fair Employment and Housing Act (FEHA). 

The law took effect immediately upon filing with the Secretary of State on October 1, 2025. This legislation significantly impacts employers by removing legal uncertainty around implementing comprehensive bias mitigation programs, encouraging more robust diversity, equity, and inclusion (DEI) initiatives without fear that the training itself could become evidence of discriminatory practices.

Key Provisions

SB 303 establishes the following important protections and definitions:

• Safe Harbor for Bias Acknowledgment: The law explicitly states that an employee's assessment, testing, admission, or acknowledgment of their own personal bias made in good faith as part of a bias mitigation training does not, by itself, constitute unlawful discrimination. This protection applies only when such acknowledgments are solicited or required as part of the training.

• Legislative Intent: The statute articulates two clear legislative purposes:  encouraging employers to conduct bias mitigation trainings, and affirming that conducting such training does not, by itself, constitute unlawful discrimination.

• Definition of Bias Mitigation Training: The law defines "bias mitigation training" as training, education, and activities provided by an employer to educate employees on understanding, recognizing, or acknowledging the influence of conscious and unconscious thought processes and their associated impacts. Critically, such training must include implementing specific strategies to mitigate the impact of employees' personal biases.

• Good Faith Requirement: The protection applies only to assessments, admissions, or acknowledgments made in good faith, ensuring that the law protects genuine educational efforts rather than pretextual activities.

• Limitation: The statute emphasizes that these protections apply to the training activity itself and acknowledgments made within that context—it does not provide blanket immunity for discriminatory conduct that occurs outside the training environment.

  
  

Impact on Employers

The enactment of Section 12940.2 has several important implications for California employers:

• Reduced Legal Risk: The most immediate impact is the reduction of legal uncertainty surrounding bias mitigation training. Employers can now implement comprehensive programs that include self-assessments, implicit bias testing, and acknowledgment exercises without fear that these activities will automatically create liability under FEHA.

• Encouragement of Robust Training: By providing a safe harbor for good faith bias acknowledgments, the law encourages employers to move beyond superficial compliance training toward more meaningful programs that require honest self-reflection and behavioral change. 

• Competitive Advantage: Employers who implement comprehensive bias mitigation programs may gain advantages in recruiting and retaining diverse talent, as such programs signal organizational commitment to equity and inclusion.

What Employers Should Do

To take full advantage of the protections offered by SB 303 and implement effective bias mitigation programs, California employers should consider the following action steps:

• Evaluate Current Training Programs: Review existing bias, diversity, and anti-discrimination training programs to determine whether they qualify as "bias mitigation training" under the statute. Ensure that programs include specific strategies to mitigate bias, not merely awareness education.

• Consider Adding Comprehensive Bias Mitigation Training: If not already in place, consider developing and adding bias mitigation training that includes the elements protected by Section 12940.2. 

• Clearly Communicate Protections to Employees: When conducting bias mitigation training, inform employees about the protections provided by Section 12940.2. Explain that good faith acknowledgments of personal bias made during training will not be used against them, creating a psychologically safe environment for honest self-reflection.

• Document Training Design and Implementation: Maintain clear documentation demonstrating that bias mitigation training is conducted in good faith and includes the required elements under the statute. This documentation may prove valuable if the training program is later challenged.

• Train HR and Management: Ensure that human resources personnel and managers understand Section 12940.2's protections and limitations. They should know how to communicate these protections to employees and understand that the statute does not excuse discriminatory conduct outside the training context.

• Review Training Materials Regularly: Periodically update bias mitigation training to reflect current research, legal developments, and organizational needs. Stale or outdated training may be less effective and could undermine good faith arguments.

• Avoid Overreliance on the Statute: Remember that Section 12940.2 provides a narrow protection—it does not immunize discriminatory conduct or create a complete defense in discrimination cases. Bias mitigation training should be part of comprehensive anti-discrimination efforts, not a substitute for them.

The implementation of SB 303 provides greater legal certainty for California employers advancing bias mitigation and DEI initiatives. Through thoughtful compliance design and effective communication, organizations can foster a more inclusive, equitable, and productive workplace culture without increasing legal exposure.

If you or your company require support with employee policy compliance, please contact the ILS legal team at contact@consultils.com. ILS team combine strategic insight, swift action, and practical solutions to identify core issues, drive efficient resolutions, and protect our clients’ interests.

Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.

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As Managing Partner at ILS, Richard Liu ranks among the leading U.S. attorneys in corporate, employment, and regulatory law. He is known for crafting legal strategies aligned with clients’ business objectives and advising Fortune 500 companies, startups, and executives on corporate transactions, financing, privacy, and employment matters across the technology, healthcare, and financial sectors.

Before founding ILS, Richard practiced at top defense firms, where he developed a reputation for anticipating risks and designing strategies that balance protection with growth. He has secured favorable outcomes in contract and intellectual property disputes, represented clients in state and federal courts, and is recognized for combining large-firm expertise with boutique-firm agility. Richard is also a frequent speaker at industry and legal conferences.

Email: contact@consultils.com | Phone: 626-344-8949

Yuki is a litigation senior counsel licensed to practice in both New York and California, with extensive experience in dynamic investigations and complex defense matters. Her practice focuses on personal injury, insurance defense, and construction defect litigation, where she is known for developing efficient, multidimensional strategies.

Before joining ILS, Yuki practiced in both New York and Los Angeles, gaining comprehensive experience representing both plaintiffs and defendants. Since 2020, she has concentrated on insurance defense and construction disputes, recognized for her thorough investigations and precise legal analysis. Since joining ILS in 2023, she has continued to provide clients with strategic, experience-driven litigation support.

Email: contact@consultils.com | Phone: 626-344-8949