The exemption for employment-related and business-to-business (B2B) data under California’s privacy law expired on January 1, 2023. Without this exemption, information previously allowed to be excluded now falls within the scope of California’s extensive privacy requirements, including notice and transparency, data minimization, and data subject rights requests.
Below is an overview of the now-expired exemptions and next steps on the requirements that now pertain to employment and B2B data.
What Was California’s Exemption?
The California Consumer Privacy Act (CCPA) temporarily exempted employment-related and B2B data from all obligations imposed under the law other than the requirement to offer an opt-out for “sales” of personal information and the obligation to provide “notice at collection” until the effective date of amendments brought about by the California Privacy Rights Act (CPRA).
In particular, the temporary exemptions applied to: (1) personal data of job applicants, employees, owners, directors, officers, and independent contractors in the context of the individual’s employment or application for employment, and (2) personal information reflecting written and verbal communications or a transaction where the consumer is acting in a B2B commercial transaction (i.e., B2B data).
It was widely expected that the same exemptions would be carried forward to the CPRA amendments. However, the California legislative session closed last year without these exemptions being...
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