After a lengthy rulemaking process, the California Privacy Protection Agency (the “Agency”) has finalized regulations under the California Consumer Privacy Act (CCPA) governing the use of automated decisionmaking technologies. These new rules—set to take effect on January 1, 2026—impose the most stringent requirements in the United States on employers’ use of artificial intelligence and other automated tools in employment decisionmaking.1
Employers subject to the CCPA who use automated decisionmaking technology (ADMT) for employment-related decisions, without meaningful human involvement, must now conduct detailed risk assessments, provide pre-use notices, and honor certain opt-out and access rights. Given the complexity and operational burden of these requirements, employers should begin preparing now to evaluate their use of these technologies and implement compliance frameworks.
Background
The CCPA required the Agency to adopt regulations addressing access, notice, and opt-out rights for automated decisionmaking technology, as well as risk assessments for high-risk processing of personal information on or before July 1, 2020.2 Due to the complexity of the topic, these regulations were delayed well beyond the initial deadline and...
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