CCPA Update: B2B and Employee Exemptions Likely Extended until 2022

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The California legislature was busy at work, and on August 30th, passed AB 1281, which extends the Business-to-Business (B2B) and employee exemptions until January 1st, 2022. Originally set to kick in on January 1st, 2021, the initial one-year hold on the CCPA’s applicability to employee and B2B information was to allow for the legislature to review the CCPA and ensure it was operating as intended and designed. Between COVID-19 and other initiatives, the legislature voted to extend these exemptions one more year, and now this sits on the Governor’s desk for signature.

As a quick reminder, businesses subject to the CCPA are still required to make certain disclosure requirements to consumers within the employment context, and employees can still sue a business should it suffer and be unable to cure the alleged breach. Within the B2B context, consumers can still opt-out of the sale of personal information and can also sue a business if a breach occurs.

Moreover, if the California Privacy Rights Act (CPRA) succeeds in November, the B2B and employee exemptions will be extended further to January 1st, 2023, so AB 1281 might be a distant memory by then. While polling suggests consumers’ overwhelming support, and Andrew Yang has joined the initiative by chairing its advisory board, consumer advocacy groups are split.

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