Legal Tech News and Events: June 20, 2022

Compliance: New NY Privacy Law Took Effect

New York privacy law on electronic monitoring of employee communications took effect on May 7, 2022.  

The newly passed legislation requires businesses that are in the state of New York to provide notice through a written notice or an electronic form to newly hired employees stating that their communications through telephone or electronic mail, internet access, and usage would be subject to monitoring. Employers should obtain the acknowledgment and should post the notice at the workplace so that current employees can easily view it anytime.

First-time violators will need to pay a fine of $500,  $1,000 for a second violation, and the following the fine would be $3,000. 

Privacy: The American Data Privacy and Protection Act Draft Released

Continuing the momentum of state privacy laws from California, Colorado, Connecticut, Utah, and Virginia, a draft for a comprehensive privacy bill at the federal level, The American Data Privacy and Protection Act (ADPPA) was released two weeks ago. On June 14, 2022, a legislative hearing was held. The bill has bipartisan support from its sponsors including House Energy and Commerce Chair Frank Pallone, Cathy McMorris Rodgers, and Sen. Roger Wicker the Senate Commerce Committee held a legislative hearing that discussed it.

The ADPPA aims to be the counterpart of the EU’s GDPR, and it also shares the best features of the California Consumer Privacy Act (CCPA). If passed, the bill would require limiting the collection, processing, and transfer of “covered data” to that which is “reasonably necessary, proportionate, and limited to” providing products or services to the individual. This would also provide American citizens additional rights to their data by giving them the choice to access, change or delete their data. The FTC and state attorney generals are the main governing bodies that will enforce the bill.

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