Most businesses understandably work to protect the privacy and security of consumers’ personal information. Of at least equal importance, however, is the privacy and security of their employees’ information. On May 7, New York’s new employee privacy law became effective and it requires employers to provide written notice to their employees prior to engaging in certain electronic monitoring activities. The state’s attorney general is responsible for enforcing the law (as it does not expressly provide a private right of action), and businesses may face financial penalties for noncompliance. Although several recently enacted consumer privacy laws exempt from their scope personal data collected in the human resources (HR) context – with California being a notable exception – New York’s law should serve as a reminder of the broad range of surveillance, data privacy, and information security requirements applicable to HR data.

New York Employee Privacy Law

Scope of applicability. The New York law applies to any private business (e.g., individual corporation, partnership, firm, or association) with a place of business within the state that uses an electronic device to monitor or otherwise intercept an employee’s (i) telephone conversations or transmissions, (ii) electronic mail or transmissions, or (iii) internet access or usage. Accordingly, unlike other data protection laws, New York’s employee privacy law does not limit its scope of applicability to a business based on its...

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