Policy

Trade Secrecy Is a Limit on the Answer, Not a Reason to Give None

Where an explanation right applies to you, trade secrecy limits the form of the answer rather than removing it. The EU's highest court ruled in February 2025 that the GDPR's meaningful information about the logic means the procedure and principles actually applied to your data. The organization holding your data must hand any disputed trade secret material to a supervisory authority or a court instead of refusing. Most of the United States has no comparable right yet, so what you can ask for turns on where you applied from.

The takeA short reply about proprietary technology can be a first answer rather than a considered one, and the person who sent it may not be the person who would have to defend it. Asking a narrower question can change who has to look. A request for the model is easy to refuse on sight. A request for the procedure and the principles applied to your own file, with the provision named, needs somebody who knows what that provision says to answer it.

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What Does an Explanation Have to Contain?

Under European data protection law, a description of the procedure and the principles actually applied to your data to reach your result. The Court of Justice of the EU said so in February 2025, deciding a case about automated credit scoring, and it required that description to be concise, transparent, intelligible and easy to get at 1.

The provision behind it is Article 15(1)(h) of the GDPR, the access right, which covers the logic, the significance and the envisaged consequences for you 2. Two limits travel with it. The right runs against the controller, meaning the employer or agency holding your data, rather than against the vendor whose software produced the output 2. And it presupposes automated decision-making of the kind Article 22 describes, so a process with genuine human involvement may sit outside it altogether 1.

What the Court withheld matters as much as what it granted. The ruling entitles nobody to the algorithm, the source code or the model weights 1.

That gap decides which follow-up a stock refusal fits. A request phrased as send me the algorithm asks for the one thing the ruling keeps back, and a reply about proprietary technology fits it. A request phrased as tell me the procedure and the principles applied to my application asks for what the Court actually described.

The same reply no longer fits the question, and the rewording costs you a sentence.

The case was about credit scoring, and no hiring decision was before the Court 1.

Where Does a Trade Secret Claim Take the Dispute?

To a supervisory authority or a court, rather than to a dead end. The Court held that a controller who calls the material a trade secret does not close the request by saying so. The disputed material goes to the authority or the court, which weighs the competing interests and decides what the person receives 1.

That is still a real limit on what reaches you directly. The balancing happens somewhere you are not, on material you cannot see, and a regulator with a backlog is not a fast door. What changes is the shape of the conversation rather than the speed of it. An employer expecting a data protection authority to read the file has a reason to write a fuller answer than a stock refusal.

A trade secret refusal is a routing instruction, not a verdict.

A second European right reaches the employer as the user of the system rather than as the holder of your data. Article 86 of the EU AI Act covers a person affected by a decision taken on the output of an Annex III high-risk system. It applies where that decision carries legal effects or similarly significantly affects the person adversely, a threshold the Act does not define and a screening rejection may or may not meet 3.

The right is to clear and meaningful explanations of the system's role in the decision procedure and the main elements of the decision taken 3. It reaches the deployer, which in hiring is the employer, and it stops at the role and the main elements rather than the model.

The date is the honest caveat, and it moved recently.

A 2026 amendment pushed the AI Act's high-risk obligations for the Annex III category, which is where recruitment and selection systems sit, to 2 December 2027 4.

What Can You Ask For in the United States?

Less than in Europe, and much of it arrives on a future date. No general right to an explanation of an automated hiring decision is in force across the country in 2026, so what you can ask for depends on where you applied from. Two rules are worth knowing by name, and neither one hands you the logic today.

New York City's Local Law 144 gives a written-request right, and it is narrow. Where the employer has not published the information on its website, you can ask in writing for three things, under the city's administrative code at 20-871(b)(3) 5. Those three are the type of data collected for the tool, the source of that data, and the employer's data retention policy, and the answer is due within 30 days 5. An explanation is not one of them.

The remedy sits with the city too. A violation carries a civil penalty of not more than $500 for a first violation and $500 to $1,500 for each one after that, recoverable by the city 6.

So a complaint there makes you a complainant, not a plaintiff.

Of the two, California's finalized rules on automated decisionmaking come closer to the European standard, and they bind from 1 January 2027. From that date a business using automated decisionmaking technology for a significant decision owes a plain-language answer to an access request, and the category expressly includes hiring 7. The answer has to cover the specific purpose, information about the logic, and the outcome, including what role a human actually played 7.

The definition is narrow, so a tool that only assists a recruiter may fall outside it, and the rules are privacy law rather than an employment remedy 7.

One federal route depends on no state at all. Where a third-party vendor produced the report, the rule that can get you a copy of your hiring score can reach the document itself. That is a different thing from an account of how it was made.

Write the Second Request

Ask a narrower question than the first one asked. A request for the algorithm invites the reply you already have, and the EU court's ruling does not entitle you to it. A request for the procedure and the principles applied to your own application asks for something a refusal has to engage with. Name the provision, and put a date on the reply.

Three things make a second message harder to wave off. Name the right you are relying on and the place you applied from, because both decide whether any of this reaches the employer at all. Ask for the logic in terms you can follow rather than for the tool. Then say where the request goes next if nothing arrives, which in Europe means the supervisory authority the Court pointed at 1.

Naming a provision is not a threat, and all three are reasonable things to ask.

Sometimes the platform publishes its own list. HackerRank's candidate AI notice lists what a candidate may request. The list names human review of a decision made or substantially assisted by AI, correction of inaccurate personal information, and an explanation of how AI was used after an adverse decision 8. The notice sends those requests to the employer rather than to the vendor, and a published list is not a statement that anyone has to grant it.

Read the vendor's own page before you write the message.

Employers are told about this ground too, and what an employer owes a candidate the AI screened out is the version written for the other chair. Where the sticking point is a person looking again rather than the logic, how to ask for a human review after an automated rejection is a separate request with its own answer.

A refusal naming a trade secret has at least conceded that software played a part in the decision.

Read the evidence

Common questions

Can an employer refuse to explain an AI score because it is a trade secret?

Not on its own, where an explanation right applies. The Court of Justice of the EU held in February 2025 that a trade secret claim does not close the request by itself. The controller, meaning the organization holding your data, has to hand the disputed material to the supervisory authority or the court, which weighs the competing interests and decides what the person receives. Across most of the United States there is no general explanation right to invoke in the first place, which is a different problem with a different answer.

Does the right cover the algorithm or the source code?

No. The words of the Court of Justice of the EU, on the GDPR access right, are the procedure and the principles actually applied to your data to produce your result, described concisely and in a form you can understand. The algorithm, source code and model weights sit outside it. That is worth knowing before you write, because a request for the model gives a refusal somewhere honest to land, and a request for the procedure does not.

What can I ask for after an automated screen in New York City?

Three things, and an explanation is not among them. Local Law 144 lets a candidate ask in writing for the type of data collected for the tool, the source of that data, and the employer's data retention policy. The request applies where the employer has not already published that information, and the answer is due within 30 days. Penalties for a violation are paid to the city rather than to you, so the complaint route is not a claim of your own.

Is a US right to a plain-language explanation coming?

In California at least, from 1 January 2027. The finalized ADMT regulations cover a business using automated decisionmaking technology for a significant decision, a category that expressly includes hiring. From that date the business must answer an access request with plain-language explanations of the specific purpose, the logic, and the outcome, including what role a human played. The definition is narrow, so a tool that merely assists a recruiter may fall outside the rules entirely.

Should I send the request to the employer or to the vendor?

The employer, or whichever organization holds your data. The European access right runs against the controller, which is the organization holding your data and deciding to use the tool. The AI Act's explanation right runs against the deployer, which in hiring is the employer. One vendor says the same in its own notice. HackerRank's candidate AI notice lists human review, correction and an explanation of how AI was used, and directs those requests to the employer.

References

  1. 1. Judgment of the Court (First Chamber) of 27 February 2025, Case C-203/22, CK v Magistrat der Stadt Wien (Dun & Bradstreet Austria GmbH), ECLI:EU:C:2025:117 Court of Justice of the European Union, via the Publications Office of the EU (CELEX 62022CJ0203), 2025. publications.europa.eu Supports what an explanation must contain (the procedure and principles actually applied, concisely and intelligibly), that the algorithm and source code are not covered, that a trade secret claim sends the disputed material to the supervisory authority or the court, and that the case concerned credit scoring rather than hiring.
  2. 2. Regulation (EU) 2016/679 (General Data Protection Regulation), Official Journal L 119, 4.5.2016 Publications Office of the European Union (CELLAR), Official Journal text, 2016. publications.europa.eu Supports the statement that Article 15(1)(h) is the access right covering the logic, significance and envisaged consequences, and that it runs against the controller rather than the vendor.
  3. 3. Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence (Artificial Intelligence Act) Official Journal of the European Union / Publications Office of the EU, 2024. publications.europa.eu Supports the description of Article 86 as a right against the deployer to clear and meaningful explanations of the AI system's role in the decision procedure and the main elements of the decision taken.
  4. 4. Regulation (EU) 2026/1744 of the European Parliament and of the Council amending Regulation (EU) 2024/1689 (Digital Omnibus on AI) EUR-Lex, Publications Office of the European Union, Official Journal text, 2026. eur-lex.europa.eu Supports the 2 December 2027 date of application for the AI Act's high-risk obligations covering the Annex III category where recruitment and selection systems sit.
  5. 5. Int. No. 1894-A (enacted as Local Law 144 of 2021), a Local Law to amend the administrative code of the city of New York, in relation to automated employment decision tools New York City Council (council file Int 1894-2020-A), copy hosted by the New York State Department of Financial Services, 2021. dfs.ny.gov Supports the written-request right at NYC Admin. Code 20-871(b)(3) covering data type, data source and retention policy, answered within 30 days where the information is not published on the website.
  6. 6. Int. No. 1894-A (enacted as Local Law 144 of 2021), a Local Law to amend the administrative code of the city of New York, in relation to automated employment decision tools New York City Council (council file Int 1894-2020-A), copy hosted by the New York State Department of Financial Services, 2021. dfs.ny.gov Supports the penalty figures and the fact that they are recoverable by the city rather than by the candidate, which is why a Local Law 144 complaint is not a claim of the candidate's own.
  7. 7. California Privacy Protection Agency, Text of Regulations (CCPA Updates, Cyber, Risk, ADMT, and Insurance Regulations), Article 11 - Automated Decisionmaking Technology California Privacy Protection Agency, 2025. cppa.ca.gov Supports the 1 January 2027 compliance date, the plain-language access response covering purpose, logic and outcome including the human's role, and the narrow ADMT definition that excludes a tool merely assisting a recruiter.
  8. 8. Candidate AI Notice HackerRank, 2026. hackerrank.com Supports the list of what the vendor says a candidate may request after an AI-assisted decision, including human review, correction and an explanation of how AI was used, and that the requests are directed to the employer.

8 sources, numbered by first appearance. How Olive sources claims

General guidance, not legal advice. Hiring rules differ by state and country and change often; check anything here against your own counsel before you act on it.

Olive assesses how a person works with AI. It does not detect AI-written documents, and it never produces a score, a ranking, or a match percentage for a person. Candidates read the same report the employer reads.

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