Q3 2025 Global Employment Law Roundup: Social Media Liability and AI Bias in Hiring
This article is for informational purposes only and not legal advice. Please consult your counsel to understand how these updates may affect your organization.
Today’s workplace moves faster than ever, while regulations globally continue to lag behind the pace of technology and societal change. As lawsuits across the U.S. and Canada progress, new regulations take shape, and bills become law, organizations face a shifting landscape of compliance obligations. Beyond litigation, regulatory bodies in the U.K. are taking stronger stances to mitigate non-financial misconduct. In Australia, new bills are being proposed to protect against misconduct in childcare. This article highlights several recent legal and regulatory developments around the world that Fama is monitoring to help employers stay compliant and manage risk effectively.
1. Courts are Recognizing the Real Life Impact of Social Media
Courts in the U.S. and Canada are advancing lawsuits that allege social platforms were intentionally designed to addict minors, resulting in serious harm. Cases including Federal MDL, School District Trials, and Masjoody v. X Corp are moving forward in 2025. These actions highlight growing concern at the legal level over the wide-reaching impact of social media use and abuse by social media platforms.
For employers, this trend underscores the importance of considering not just compliance, but also employee wellbeing and brand reputation as part of risk management strategies.
2. FCA Expands Non-Financial Misconduct Rules to Social Media Conduct
In the U.K., the Financial Conduct Authority (FCA) finalized new rules on non-financial misconduct (NFM) that extend accountability into digital spaces. The July 2025 update, CP25/18, will take effect on September 1, 2026. It makes bullying, harassment, and violence grounds for regulatory action across non-bank financial firms.
The FCA clarified that firms are not expected to monitor private lives. However, they must act if misconduct surfaces, particularly when it involves colleagues, relates to the firm’s business, or occurs through work devices. This guidance directly brings social media conduct within the scope of “fitness and propriety” assessments.
For HR and compliance teams, this reinforces the need for compliant social media background checks that examine only public, job-relevant behavior while avoiding protected class information or private accounts.
3. Australia Proposes “Banned in One, Banned in All” Childcare Law
Australia is considering legislation to prevent childcare workers banned in one jurisdiction from working elsewhere. Prompted by alarming abuse cases, including a Melbourne childcare worker charged with 70 offenses against infants, the proposal would close gaps in the current system where each state and territory runs separate checks without consistent information sharing.
The new law would create a national checking capability to share both criminal history and misconduct findings across jurisdictions. Despite expected technology and administrative hurdles, implementation is targeted by the end of 2025.
4. AI Bias in Hiring Heads to Court
AI in employment continues to face intense scrutiny, with several lawsuits in the U.S. progressing that could reshape how HR technology is designed and deployed:
- SiriusXM (Aug. 2025): Allegations that AI-based hiring tools discriminated against candidates based on race by using proxies such as education and address.
- Mobley v. Workday (June 2025): A California court conditionally certified ADEA claims involving alleged age discrimination in AI-driven applicant recommendations.
- ACLU v. Intuit & HireVue (Mar. 2025): Complaint arguing that AI hiring tools produced worse outcomes for deaf and non-white applicants.
Courts are signaling that AI bias will not be tolerated. Employers should demand transparency from vendors, regularly audit tools for disparate impact, and ensure human oversight remains central to hiring decisions.
Final Thoughts
From the recognition of social media’s role in harmful behaviors to stricter oversight in financial services and new safeguards in childcare, regulators are placing increasing pressure on both platforms and employers. The FCA’s decision to explicitly link non-financial misconduct to regulatory oversight is a strong signal that online behavior, including social media activity, can no longer be ignored.
The common theme across the globe is clear: behavior, bias, and online conduct have become compliance priorities. Employers that modernize their practices by combining compliant background checks, behavioral screening of public online content, and clear policies around social media and AI will be best positioned to reduce risk, protect people, and safeguard brand reputation.
