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Staffing agencies & employers

ADMT opt-out rules for staffing agencies

If AI tools score, rank, or screen candidates, California's automated decisionmaking technology (ADMT) regulations likely apply. Businesses using ADMT for significant decisions must comply by January 1, 2027.

What the ADMT regulations cover

The CPPA's approved regulations address businesses' use of automated decisionmaking technology to make significant decisions about consumers — which includes employment decisions such as hiring, allocation of work, and compensation. They require a pre-use notice, a way for consumers to opt out (subject to listed exceptions), and access to information about the ADMT's use.

Where staffing agencies are exposed

Most agencies didn't build these tools — they switched them on inside software they already use.

  • Resume-screening or candidate-ranking features inside your applicant tracking system.
  • Video-interview tools that score responses.
  • Job-board integrations that auto-reject candidates based on scoring.
  • No pre-use notice shown to candidates before the tool is used.

Preparing before the deadline

Start with an inventory of every tool that scores or filters candidates, then draft the pre-use notice and decide how candidates will submit opt-out requests. Everproof Pro hosts the notice and a two-channel opt-out, and keeps the risk-assessment documentation file current. Have counsel review the final language for your workflows.

Primary sources

Everproof provides compliance software and operations support. It is not a law firm and does not provide legal advice. Using Everproof does not guarantee compliance or prevent fines.

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