AI Recruitment Compliance Checklist (U.S. 2025 Guide)

An AI-powered application recruiter… especially one used for hiring, screening, or engaging with candidates… must comply with several U.S.-based legal, ethical, and data protection standards. Here’s a comprehensive list of key regulations and frameworks such a tool may need to follow:

🇺🇸 U.S.-Based Compliance Requirements for AI Recruitment Applications

🔐 1. Data Privacy & Security

✅ CCPA (California Consumer Privacy Act)

• Applies if the recruiter AI collects personal data of California residents.

• Requires transparency about data usage, right to delete, and opt-out mechanisms.

✅ CPRA (California Privacy Rights Act)

• Strengthens CCPA.

• Adds requirements around sensitive personal information, data minimization, and retention.

✅ State-Level Privacy Laws

Similar to CCPA/CPRA are emerging in:

• Colorado (CPA)

• Virginia (VCDPA)

• Connecticut (CTDPA)

• Utah (UCPA)

These may apply if you’re processing data from residents of these states.

✅ GLBA (Gramm-Leach-Bliley Act) (if used in financial recruitment)

• Requires secure handling of personal financial information.

🧑‍⚖️ 2. Employment & Anti-Discrimination Laws

✅ Title VII of the Civil Rights Act

• Prohibits discrimination based on race, color, religion, sex, or national origin.

• AI algorithms must be tested for bias to avoid disparate impact.

✅ Americans with Disabilities Act (ADA)

• Recruiting systems must be accessible to people with disabilities.

• Also prohibits discrimination based on disability in hiring.

✅ Age Discrimination in Employment Act (ADEA)

• Prohibits bias against workers age 40+.

• AI models must avoid patterns that discriminate by age.

✅ Equal Employment Opportunity Commission (EEOC) Guidelines

• Enforce anti-bias hiring practices.

• Companies may be asked to validate the fairness of their AI systems.

EEOC is actively investigating AI hiring practices under new scrutiny.

🧪 3. AI Fairness, Transparency & Accountability

✅ NYC Local Law 144 (Effective 2023)

• Requires bias audits for automated employment decision tools (AEDTs) used in New York City.

• Employers must:

  • Conduct annual bias audits

  • Publish results publicly

  • Notify candidates of AI use

If you recruit candidates in NYC, this is legally binding.

✅ FTC Guidance on AI

• Federal Trade Commission warns against:

  • Deceptive claims about what the AI can do

  • Unfair outcomes (bias, data misuse, etc.)

  • Poor data handling or oversight

The FTC can fine or penalize companies misusing AI in recruitment.

🔍 4. Optional but Recommended Frameworks & Certifications

• NIST AI Risk Management Framework – voluntary but respected for AI safety, fairness, and reliability.

• SOC 2 – ensures secure data practices (especially if your platform is SaaS).

• ISO/IEC 27001 – international security standard, good for trust and audits.

• EEOC’s AI Use Guidance (2023) – strong advisory position on fair AI usage.

📋 Summary Checklist