As AI reshapes industries, California is responding to the legal challenges posed by automated decision-making technology (ADMT) in the workforce. Effective July 24, 2025, the California Privacy Protection Agency (CPPA) will implement regulations under the California Consumer Privacy Act (CCPA) concerning ADMT, which encompasses tools for recruitment, performance evaluation, and employee monitoring. Companies using ADMT are responsible for compliance, including liability for third-party vendor actions and the necessity for risk assessments. Key notice requirements mandate that employers inform employees and applicants about ADMT use, its purpose, operational details, opt-out rights, and data access instructions. Employers have until January 1, 2027, to align with these requirements. As AI regulations evolve, businesses must continuously update their privacy policies and consult legal experts to navigate compliance challenges. For further information on AI regulations, register for CDF’s webinar on “AI, Algorithms & Employer Protection” scheduled for August 20.
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