On January 1, 2023, the California Privacy Rights Act (“CPRA”) will go into effect. This statute imposes new obligations on California employers with respect to the information they collect and maintain regarding employees and applicants. Although time remains for employers to prepare for compliance with the CPRA, some employers may be unaware that the statute also includes a “look-back” provision requiring employers to account for all information collected since January 1, 2022. For this reason, employers are well advised to assess their compliance and revise policies and procedures regarding data collection and storage sooner rather than later.
Why Does the CPRA Apply to Employers?
Although generally described as a consumer rights act, the CPRA broadly defines a “consumer” as any “natural person who is a California resident.” This broad definition encompasses employees, applicants, individual contractors, etc. (For ease of reading, this article generally references “employees,” but employers need to be cognizant that these provisions have broader application.)
Will The CPRA Apply to All Employers?
Generally, the CPRA will affect for-profit businesses that have annual gross revenue of $25 million or greater, or that are in the business of buying and selling personal information. The statute contains more precise definitions and thresholds, but the $25 million revenue threshold will be the key provision for determining whether the vast majority of employers of California...
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