The CPPA’s New ADMT Rules: Is Your AI Hiring Tool Still Legal?
If your AI makes decisions about people, the CPPA has a new set of rules for you. Opt-outs are coming. 🚫
What is ADMT?
ADMT stands for Automated Decision-Making Technology. The California Privacy Protection Agency (CPPA) defines this broadly to include any system that processes personal information to make a decision that has a "legal or similarly significant effect" on an individual.
The Hiring Trap
The most common use case affected is hiring. If you use AI to screen resumes, rank candidates, or analyze video interviews, you are using ADMT.
New Consumer Rights
The Big Three
- Right to Know: You must disclose that you are using ADMT and how it works (logic, key parameters).
- Right to Opt-Out: Candidates must be able to say "No" to the AI and request a human review.
- Right to Access: They can ask for the specific data the AI used to make its decision.
Is Your Tool Compliant?
Ask yourself:
- Can a candidate complete the application process without interacting with the AI?
- Can you explain, in plain English, why the AI rejected a candidate? (If it's a "black box," it's a liability).
Conclusion
Efficiency cannot come at the cost of fairness. The CPPA's rules ensure that humans remain in the loop for life-altering decisions. Audit your hiring stack today.