Key Regulations Impacting Tech Hiring and Compliance

Hiring in tech is under more scrutiny than ever. Speed matters, but speed without compliance is a trap. From GDPR to the EU AI Act, the rules shaping how we recruit are evolving fast. HR leaders who want to build trust, avoid risk, and scale responsibly need to make compliance part of every step of hiring.

At Pescheck, compliance is not a box to tick, it is part of our DNA. Here’s what matters most right now:

GDPR: Data Privacy in Recruitment

GDPR reshaped how organizations handle candidate data. Every CV, background check, and interview note counts as personal data. You need a lawful basis such as legitimate interest or explicit consent, and you have to be transparent with candidates about what you collect and why. It is also critical to minimize what you store, delete it when it is no longer needed, and be ready to honor requests from candidates who want to access or erase their information.

In short, GDPR is not just a legal requirement, it is a way to build trust with candidates.

EU AI Act: High-Risk Recruiting Tools

The EU AI Act classifies any use of artificial intelligence in hiring as high-risk. Employers must disclose to candidates when AI is being used, and decisions cannot be left to algorithms alone. Human oversight is mandatory, and data needs to be carefully checked to avoid bias. This means you cannot simply plug in a tool and walk away; you need to know how it works and how it impacts decisions.

If your recruitment process includes AI-powered tools, now is the time to prepare because soon it will be the law.

ISO 27001 and SOC 2: Data Security Standards

ISO 27001 is the gold standard for information security management. It shows that an organization has audited processes to keep sensitive data safe. SOC 2 is another framework that validates how vendors protect data through an external audit. For HR, these certifications mean peace of mind that your candidate data is handled responsibly.

They are not just badges; they are signals of trust.

FCRA and EEOC: Fairness in U.S. Hiring

The Fair Credit Reporting Act (FCRA) requires employers to get clear consent before running background checks and to follow a specific process when adverse information is found. The Equal Employment Opportunity Commission (EEOC) requires that hiring practices are fair, non-discriminatory, and considerate of each candidate’s circumstances.

Fairness is not optional. Compliance and ethics go hand in hand.

What Smart HR Teams Do

Smart HR teams embed compliance into their workflows and integrate it with their ATS. They work only with certified and audited partners, they document every step, and they train their people to stay on top of changing rules. This way, audits become easier and compliance becomes part of everyday practice.

Turning Compliance into Advantage

Regulations do not have to be a burden. They can become a competitive advantage. When candidates see that you value privacy, transparency, and fairness, your employer brand becomes stronger. At Pescheck, we are ISO 27001 certified, fully GDPR compliant, integrated with over 100 ATS platforms, and committed to making hiring both fast and compliant.

Ready to see how? Book a demo and turn compliance into your competitive advantage.