California Consumer Privacy Act and the Fair Credit Reporting Act
As you may be aware, the State of California has passed the California Consumer Privacy Act (CCPA), which will become effective on 01/01/2020.
This law is designed to enhance the privacy of California citizens by allowing them to control the personal data collected on them and how it is used and/or resold. However, the CCPA applies to “consumers” and defines “consumers” so that it would cover employees and job applicants. In order to address this issue, there have been some amendments passed to the original law, including AB-25 & AB-1355, that provide exemptions for personal information collected and used for employment purposes and information regulated under the Fair Credit Reporting Act (FCRA).
When creating a policy to comply with the CCPA, it is important for employers to understand these exemptions and to consult with your legal counsel to determine how these amendments affect your specific situation.
This bill amends the CCPA to exempt personal information sold to or from a consumer reporting agency such as Justifacts. Specifically:
This title shall not apply to the sale of personal information to or from a consumer reporting agency if that information is to be reported in, or used to generate, a consumer report as defined by subdivision (d) of Section 1681a of Title 15 of the United States Code, and use of that information is limited by the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.).
As described above, personal information on applicants and employees that is provided to Justifacts to create a consumer report is exempt from the requirements of the CCPA.
Additionally, AB-25 exempts personal information collected by a business on a person acting as a job applicant, employee of, etc. Specifically:
This title shall not apply to any of the following:
- Personal information that is collected by a business about a natural person in the course of the natural person acting as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or contractor of that business to the extent that the natural person’s personal information is collected and used by the business solely within the context of the natural person’s role or former role as a job applicant to, an employee of, owner of, director of, officer of, medical staff member of, or a contractor of that business.
The text of this bill can be found here: AB-25
This bill amends the CCPA to exempt certain activities allowed under the FCRA. Specifically:
This title shall not apply to an activity involving the collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, as defined in subdivision (f) of Section 1681a of Title 15 of the United States Code, by a furnisher of information, as set forth in Section 1681s-2 of Title 15 of the United States Code, who provides information for use in a consumer report, as defined in subdivision (d) of Section 1681a of Title 15 of the United States Code, and by a user of a consumer report as set forth in Section 1681b of Title 15 of the United States Code.
The text of this bill can be found here: AB-1355
As described in these two amendments, personal information on applicants and employees that is provided to Justifacts to create a consumer report is exempt from the requirements of the CCPA. With this in mind, Justifacts supports the ability of consumers to be in control of their personal information and we will balance the requirements of the CCPA with our duty to ensure compliance with the FCRA. We will continue to monitor this law and any changes that should follow.
It is important to note that Justifacts is providing this information as a service to our clients. None of the information contained herein should be construed as legal advice, nor is Justifacts engaged to provide legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult your attorney or legal department if you want assurance that our information, and your interpretation of it, is appropriate to your particular situation.