View all Articles

California Consumer Privacy Act (CCPA) Takes Effect Immediately 

On February 9, 2024, the California Supreme Court issued a landmark decision allowing the California Consumer Privacy Act (CCPA) to go into full effect immediately. This ruling follows a legal challenge from several business groups who argued the law was unconstitutionally vague. With the legal hurdle removed, the CCPA now applies to all covered businesses, including employers in California. 

Here is a simple breakdown of the California Consumer Privacy Act (CCPA) and its potential effects on businesses and employees: 

What is the CCPA? 

  • The CCPA is a California law that gives residents more control over their personal information collected by businesses. 
  • It grants California consumers key rights regarding their data. 

Key Rights Granted by CCPA 

  1. Consumers can ask businesses to disclose: 
    • The types of personal information collected. 
    • Why it is collected.
    • If it is sold, and to whom. 
  2. Consumers can ask businesses to delete their personal information (with some exceptions). 
  3. Consumers can ask businesses to stop selling their personal information. 
  4. Businesses cannot discriminate against consumers for exercising their CCPA rights. 

How the CCPA Impacts Employers 

  • Employers need to: 
    • Inform employees about what data you collect and why. 
    • Set up processes to manage deletion and access requests from employees. 
    • Ensure that third-party services handling employee data are CCPA compliant. 
  • Implementing the necessary changes to be compliant with the CCPA could involve costs such as updating systems or seeking legal advice. 

Key Considerations for Employers 

  • Compliance. Employers must comply with the CCPA’s requirements for collecting, using, and disclosing employee data. This includes developing and implementing procedures for handling employee requests related to their personal information. 
  • Training. HR personnel and other relevant staff should be trained in the CCPA’s provisions to ensure consistent and compliant practices. 
  • Conduct an Audit. Identify and categorize employee personal information collected and stored. 
  • Communication. Communicate your privacy practices to your employees and inform them of their rights under the CCPA. 

Next Steps 

Employers will need to outline procedures for addressing employee requests, data security measures, and training programs. Employers should also review the California Attorney General’s CCPA website for official guidance and resources. 

The CCPA is a complex law, and it is recommended that businesses consult legal counsel to ensure proper compliance as failure to comply with the CCPA could lead to fines and lawsuits from employees. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.