New California Law A.B. 1281 Extends B2B and Employee Data Exemptions in CCPA That Were Expiring - Articles

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New California Law A.B. 1281 Extends B2B and Employee Data Exemptions in CCPA That Were Expiring

New California Law A.B. 1281 Extends B2B and Employee Data Exemptions in CCPA That Were Expiring

California Governor Gavin Newsom (D) signed A.B. 1281 into law, extending the sunset date on critical exemptions for employment and business-to-business data from the California Consumer Privacy Act (CCPA).

A.B. 1281 passed the Assembly on August 28, 2020. The Senate concurred on the amended version of the bill on August 30 and sent it to the governor, who signed it on September 29.

The legislation extends the sunset on the employment and B2B data exemptions until January 1, 2022, unless the voters approve the California Privacy Rights Act (CPRA) ballot initiative on election day (November 3, 2020). If CPRA is approved, the exemptions will also expire on January 1, 2022.

Prior to this bill’s passage, the exemptions were scheduled to expire on January 1, 2021.

The signing of A.B. 1281 ensures that, one way or another, the HR and B2B exemptions will be extended for another year, delaying any concerns that businesses would have to figure out how to incorporate such data into their compliance programs.

IA advocated for the extension of these exemptions this year and urged the passage of California A.B. 1281 continually with our California Chamber of Commerce coalition allies. We applaud Gov. Newsom for signing the bill into law and our California members who contacted the Governor in support of signature using our grassroots platform.

This information is not intended and should not be construed as or substituted for legal advice. It is provided for informational purposes only. It is advisable to consult with private counsel on the precise scope and interpretation of any laws/regulation/legislation and their impact on your particular business.

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