The Short Answer: Probably Yes
If your hiring process involves any of these steps, your ATS likely qualifies as an Automated Decision-Making Technology under California law:
Resume screening that automatically filters out candidates based on keywords, experience, or education
Video interview analysis (e.g., HireVue) that uses AI to score candidate responses
Candidate ranking algorithms that order applicants by "fit score"
Automated assessments (e.g., Pymetrics) that measure behavioral or cognitive traits
Chatbot-driven interviews that collect and evaluate candidate responses
Common Tools That Are Covered
| Tool | What It Does | Covered? |
|---|---|---|
| HireVue | AI video interview assessment | ⚠️ Likely covered |
| Greenhouse | ATS with AI-powered screening | ⚠️ Likely covered |
| Lever | Automated candidate sourcing/scoring | ⚠️ Likely covered |
| Pymetrics (Harver) | AI behavioral assessments | ⚠️ Likely covered |
| Workday Recruiting | ML-based candidate matching | ⚠️ Likely covered |
| ZipRecruiter AI | AI job matching & recommendations | ⚠️ Likely covered |
Why Hiring Is High-Risk
Employment decisions are explicitly classified as "significant decisions" under the ADMT regulations. This means:
1Pre-use notice is mandatory — You must tell candidates that AI is involved in the hiring process before it's used
2Opt-out must be offered — Candidates have the right to request a fully human-reviewed process
3Risk assessment required — You must document the privacy risks and potential for bias in your hiring AI
4Decision logic must be documented — You need to explain how the system evaluates candidates
What Happens If You Don't Comply
Enforcement actions from the California Privacy Protection Agency (CPPA)
Fines of up to $7,988 per intentional violation (CPI-adjusted)
Private right of action for statutory damages
Reputational damage and potential discrimination lawsuits
Steps to Take Now
1Inventory your hiring tools — Document every AI system in your recruiting pipeline
2Generate pre-use notices — Create clear disclosures for your job postings and application portals
3Set up opt-out mechanisms — Deploy a consumer-facing opt-out form and establish a human-review alternative
4Conduct risk assessments — Evaluate each tool for bias, privacy risks, and data handling practices
5Document decision logic — Write plain-language explanations of how each system evaluates candidates
RightToHuman provides pre-built templates for all major hiring ATS platforms, making compliance achievable in days instead of months.