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New York Privacy Act 2.0 Moving Fast and Furious

04 Apr

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Update Applicable to:Effective date
All employersSee details below


What happened?

On June 8, 2023, the New York Privacy Law was passed by the Senate after its third reading and then delivered to the NY State Assembly for consideration. The bill died in the Assembly and was revived in January of this year, and now making its way through the legislature. If enacted, the law will severely restrict how businesses can collect, use, and share consumer personal information throughout the State.


What are the details?

The New York Assembly reintroduced the New York Privacy Act (the “Act” or “NY Privacy Law”). Given the new political landscape and the push for more stringent consumer protection laws, this reintroduced NY Privacy Law should be closely watched by the industry as it moves through the legislative process.

If enacted, certain provisions of the NY Privacy Law will take effect immediately, while others will not take effect until one year after it is law.

For now, as defined in the bill, the consumer definition does not include anyone in the employment context (employee, employer, or contractor) and it expressly contemplates employment information as an exception, which means, employment information is not considered part of the potential bill.

  • 4. “Consumer” means a natural person who is a New York resident acting only in an individual or household context. It does not include a natural person known to be acting in a professional or employment context.
  • 14. “Natural person” means a natural person acting only in an individual or household context. It does not include a natural person known to be acting in a professional or employment context.
  • 2. This article does not apply to: …(vi) data maintained as employment records, for purposes other than sale…


Similarities to other laws:

(1). It will apply to legal persons who conduct business in New York and meet one of the following criteria:

  • Have annual gross revenue of $25 million or more.
  • Control or process the personal data of 50,000 consumers or more.
  • Derive over 50% of gross revenue from the sale of personal data.


(2). Consumers have the right to:

  • Know how their data is being used.
  • Opt-out of the processing of their personal data.
  • Access their data.
  • Delete their data.
  • Correct their data.


(3). Does not contain a private right of action and may only be enforced by the Attorney General of the State.

Vensure HR will monitor the bill and update employers in any relevant manner that would affect them.


Business Considerations

  • Stay up to date with the status of this bill (link below).
  • Use this information to review and update your policies and practices regarding privacy data.


Resources


Source References

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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