The California legislature failed to extend the California Consumer Privacy Act’s (“CCPA”) temporary exemptions for employee and human resources (“HR”) data and business-to-business (“B2B”) communications before the end of the legislative session on August 31, 2022. These exemptions will automatically expire on January 1, 2023, the same date that the California Privacy Rights Act (“CPRA”) becomes fully effective.
The current exemptions under the CCPA broadly apply to the personal information of job applicants, employees, owners, directors, officers, and independent contractors in the context of an individual’s employment or application for employment, and to personal information reflecting written and verbal communications where a consumer is acting in a business-to-business commercial transaction. Exemptions also apply to personal information collected by a business for emergency contact information and personal information necessary for a business to retain and administer employee benefits, provided the information is used only for those purposes.
Now that the HR and B2B exemptions expire in less than four months, covered businesses will need to ensure they comply with the CCPA and CPRA with respect to virtually all employee and HR data, which will likely require significant updates to privacy programs. Businesses and organizations that have not yet prepared for compliance should begin immediately, and should take several proactive steps we previously highlighted that...
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