The EEOC is developing guidelines and providing resources to address algorithmic bias in employment decisions, ensuring that AI-powered tools comply with anti-discrimination laws and promote fairness in hiring practices (Ongoing). This has become ever more important in 2024 and beyond due to the rapid adoption of AI in HR Tech and Talent Acquisition ecosystems. These are guidelines still in development and are constantly evolving and will become formalized into standard laws and regulations over time. These policies are critical for startups in this space, as the EEOC is now looking into AI bias in hiring.

Various US states have enacted comprehensive data privacy laws, such as the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), Virginia Consumer Data Protection Act (VCDPA) and Colorado Privacy Act (CPA), which grant consumers rights over their personal data, including the right to access, delete, and opt-out of the sale of their data (2018-Present). These laws also affect HR data and will only grow over time. HR vendors must stay on top of these laws to adhere to compliance across the board, especially in the recruiting software space.

Several states and localities have enacted pay transparency laws, requiring employers to disclose salary ranges in job postings and provide pay data to employees (2018-Present). These laws aim to promote pay equity and reduce gender and racial pay gaps. These policies are becoming more relevant as candidate data and tracking will be critical to solve for fair and equal opportunities. These policies will affect the ATS landscape as well as the reporting that it provides to its users. These policies are more important than ever in 2024 and beyond and will need to be factored into product roadmaps for software vendors in the HR Tech and ATS spaces to provide compliance for their customers and the end users.