California Bill Extending Employment and B2B Compliance Obligations for CCPA Heads to Governor Newsom's Desk

Cybersecurity and Privacy   |   Labor & Employment   |   September 3, 2020

A bill that would extend California Consumer Privacy Act (CCPA) compliance obligations for employment information and business-to-business information has passed through both chambers of the California Legislature and has been sent to Governor Gavin Newsom's desk for signature before the end of September.

AB 1281 extends both the carve-outs for personal information related to business-to-business exchanges and information related to employee and applicant personal information through January 1, 2022.

The bill is inclusive of a contingency related to the passage of the California Privacy Rights Act. The California Privacy Rights Act (CPRA), which will appear on the November 3 ballot as Proposition 24, extends this deadline to January 1, 2023, should the initiative pass. The CPRA would also usher in further compliance obligations before the January 1, 2023, deadline.

Even with an extension, employers should be mindful of their potential CCPA obligations including:

  • Engaging in data mapping and review of all information collected regarding employees to determine which information may or may not be exempt from the requirements of the CCPA;
  • Providing notice to employees, i.e. privacy policies and practices, that are compliant with the notice requirements of the CCPA; and
  • Ensuring data security practices employ "reasonable security" - some employee information could be subject to the CCPA's private right of action.

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