Ever since the passage of California Consumer Privacy Act by the California Legislature in 2018, and the passage of the California Privacy Rights Act via referendum in 2020, employee data has largely been carved out from their application. Barring action by the Legislature in its waning days (and that legislation surviving any court challenge), as of Jan. 1, 2023, the CPRA will apply fully to employee data.
This represents a major expansion in the statute’s scope. Companies that do business in California and meet the thresholds have already put in place compliance programs for consumers with whom they interact. And CCPA already required employers to provide notice to employees regarding what data they collect and how it's being used. But now, with CPRA applying wholesale to employee data, employers must make available a whole new panoply of rights.
How should employers prepare for this change? CPRA compliance is a complex topic, but three areas that deserve particular focus are employee rights, agreements with service providers, and avoiding sales of data.
Employee rights. The most important consideration for employers is how to give effect to the rights employees will have under CPRA. Below is a list of the key rights employees will gain:
- Right to know. While employers already had to let employees know what data they collect and for what purposes. Now they must also inform them of the sources of the data and the categories of third parties to which the employer...
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