The California Consumer Privacy Act (CCPA) exemptions for employee and business-to-business (B2B) personal information have not been extended, further complicating the privacy regulatory landscape for businesses in California. California employers must prepare to provide an array of new privacy rights to employees as of January 1, 2023, which is the effective date of the California Privacy Rights Act (CPRA) amending the CCPA.
California is currently on track to be the first state to provide expansive privacy rights to employees. In addition, new privacy rights will apply to personal information collected in the context of a business “providing or receiving a product or service to or from” another business.
Two bills had been introduced in the California Legislature that would have extended or made permanent the employee and B2B exemptions, but neither bill had been enacted when the legislature’s session expired on August 31, 2022. Given that the legislature will not reconvene until January 1, 2023, it is now unlikely that the employee and B2B exemptions will be extended before the January 1 compliance date.
The CCPA currently imposes limited obligations on employers with respect to employee data if they qualify as “businesses” subject to the law. The CCPA applies to the personal information of “consumers,” but defines that term so broadly that it would include employees, job applicants, officers, directors, and independent contractors. California employers are...
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