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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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Businesses that are subject to the <a href="https://www.thompsonhine.com/publications/final-ccpa-regulations-approved-effective-immediately">California Consumer Privacy Act (CCPA)</a> have been awaiting clarity as to whether personal information collected and processed in the employment and business-to-business context would be subject to the full scope of the law on January 1, 2021, or whether the CCPA’s temporary exemption for such data would be extended. In response, the California General Assembly recently passed Assembly Bill 1281 (<a href="https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1281">AB-1281</a>), which extends both of these exemptions until January 1, 2022.

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However, the timeframe set forth in AB-1281 would become inoperative if the California Privacy Rights Act (CPRA) is voted into law by Californians on November 3, 2020. The CPRA includes many new data privacy rights and protections for California residents. It also contains the same exemptions for employment and business-to-business data as is set forth in AB-1281, but the CPRA’s exemptions do not expire until January 1, 2023. In other words, AB-1281 is intended to provide a backstop if the CPRA fails to become law by preventing these two exemptions from expiring at the end of this year. As a reminder, the two exemptions addressing personal information collected and processed in the employment and business-to-business context are as follows:

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Notwithstanding these two exemptions, the CCPA’s provisions affording individuals with the right to initiate a private right of action for certain security incidents involving their personal information in the custody or control of a business subject to the CCPA, applies to personal information collected and processed in the employment and business-to-business context. This is especially important in the “HR” context given the highly sensitive data that businesses collect and retain regarding their employees, job applicants, and contractors (e.g., Social Security numbers, driver’s license numbers).

We will continue to track the progress of AB-1281 and the CPRA and keep you apprised of developments as they arise.

Thomas F. Zych 216.566.5605 <a href="mailto:Tom.Zych@ThompsonHine.com">Tom.Zych@ThompsonHine.com</a>

Steven G. Stransky 216.566.5646 202.263.4126 <a href="mailto:Steve.Stransky@ThompsonHine.com">Steve.Stransky@ThompsonHine.com</a>

Darcy M. Brosky 216.566.5774 <a href="mailto:Darcy.Brosky@ThompsonHine.com">Darcy.Brosky@ThompsonHine.com</a>

Craig A. Foster 614.469.3280 <a href="mailto:Craig.Foster@ThompsonHine.com">Craig.Foster@ThompsonHine.com</a>

Mona Adabi 202.263.4147 <a href="mailto:Mona.Adabi@ThompsonHine.com">Mona.Adabi@ThompsonHine.com</a>

Brian Doyle-Wenger 614.469.3294 <a href="mailto:Brian.Doyle-Wenger@ThompsonHine.com">Brian.Doyle-Wenger@ThompsonHine.com</a>

or any member of our <a href="https://www.thompsonhine.com/services/privacy-and-cybersecurity">Privacy &amp; Cybersecurity</a> group.

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.thompsonhine.com/wp-content/uploads/2022/04/California_Legislature_Extends_CCPAs_Exemptions_for_Personal_Information.pdf

California Legislature Extends CCPA’s Exemptions for Personal Information in the Employment and Business-to-Business Context

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