9/2/20

Client Alert: California Legislature Extends CCPA’s Employee and Business-to-Business Exemptions Until 2022

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On Sunday, August 30th, the California Legislature passed AB 1281, a bill extending the business-to-business and employee carve-outs to California Consumer Privacy Act (CCPA) compliance until January 1, 2022. As is, the CCPA exempts from its scope applicant, employee, and contractor data along with business-to-business communications and transactions. These exemptions are set to expire on January 1, 2021, however, if signed by California Governor Newsom AB 1281 would extend these exemptions by a year.

Businesses must still inform employees as to the categories of personal information to be collected and the purpose for which the categories of information collected shall be used. Employees also have a private right of action in case of a data breach.

The bill would only become operative if signed by Governor Newsom, and if the California Privacy Rights Act (CPRA) does not succeed in the November 2020 general election. The CPRA would extend the CCPA’s employee and business-to-business exemptions until January 1, 2023.

For questions about the CCPA, the CPRA, assistance with your CCPA compliance program, or questions about privacy laws in general, please contact John Landolfi, Christopher Ingram, Christopher LaRocco, Sarah Boudouris, Gretchen Rutz, or your Vorys attorney.