How Employers Can Prepare for California's New Privacy Regulations

California employers have another compliance issue to keep on their radar: new privacy regulations under the California Consumer Privacy Act (CCPA).

While many of the major compliance deadlines won't take effect until 2027 and beyond, 2026 is the perfect time for employers to understand what the new rules mean and begin preparing.

One of the biggest areas of focus is the use of Automated Decision Making Technology (ADMT). This can include tools that use algorithms, artificial intelligence (AI), or automated processes to help make decisions related to hiring, promotions, performance management, scheduling, and other employment-related activities.

Under the new regulations, some employers may be required to:

• Conduct privacy risk assessments.

• Track how ADMT is being used within their organization.

• Provide notices to employees and applicants regarding certain ADMT practices.

• Offer opt-out rights in situations where the regulations require them.

For many organizations, the first step will be identifying whether any current HR, recruiting, or workforce management systems use automated decision-making features.

As California continues to expand privacy protections, employers should stay informed and begin evaluating their technology, data collection practices, and internal policies. Taking proactive steps in 2026 can make future compliance much easier.

We'll be sharing a more detailed breakdown of these new regulations and what they mean for employers in future updates as CA releases more information and next steps.