California’s proposed CCPA regulations significantly impact employers by introducing stricter rules on automated decision-making technology (ADMT) used in hiring and performance evaluations, mandating comprehensive risk assessments for high-risk data processing, and requiring rigorous cybersecurity audits. These regulations aim to enhance transparency and protect employee data, creating substantial compliance challenges for businesses. Failure to comply could result in penalties and legal repercussions. The rules offer some exceptions but compliance remains complex, necessitating proactive measures such as updating privacy policies and enhancing data security.
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