Employer Exemptions Under the CCPA - SHRM
Since the California Consumer Privacy Act's (CCPA) 2018 passage, employers have been wondering how the law will apply to data collected and maintained about employees. Until now, employment data had been exempted from most of the CCPA's requirements.
But the California Privacy Rights Act (CPRA) amendments to the CCPA took effect on Jan. 1, and the legislature failed to extend the employer exemptions, meaning many categories of human resources data will be subject to the requirements of the law.
Employee data now will be treated as any other commercial information, and covered employers will need to add such data to their ongoing compliance efforts. Indeed, under the CCPA, personal information is defined broadly and could include an employee's contact information, insurance and benefits elections, bank information, emergency contacts, dependents, resume, performance evaluations, wage statements, time records, equity grants, compensation history, and other information routinely collected during the employment relationship.
Moreover, the CPRA introduces a new concept of sensitive personal information, such as financial information, social security numbers, communications content, health information, and biometrics, which must be considered and addressed by the employer.
First, employers must prepare and provide a privacy notice to employees and job applicants when personal information is collected or beforehand, potentially including on online applications. It can be in the...
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