California's New Data Privacy Law Impacts Employee Records

California's CPRA Amendments and Employee Data

California's amended California Privacy Rights Act (CPRA) now fully applies to employee data as of January 1, 2026. This expansion of the CPRA means that businesses with employees in California must comply with new data privacy obligations concerning their workforce.

The CPRA, which originally focused on consumer data, now mandates that employers handle employee personal information with the same rigor. The amendments, detailed in Cal. Civ. Code § 1798.100 et seq., require employers to disclose how they collect, use, and share employee data. This includes providing detailed notices at the point of data collection and ensuring that employees can access, correct, and delete their personal information.

Key Compliance Requirements

Employers with annual gross revenues over $25 million, those buying or selling personal information of 100,000 or more consumers or households, or those deriving 50% or more of annual revenues from selling consumer data, must comply with these new requirements. Notably, the CPRA introduces the right for employees to opt-out of the sale of their personal information and restricts the use of sensitive personal data.

Businesses must also implement reasonable security measures to protect employee data from unauthorized access and breaches. Non-compliance can result in penalties of up to $7,500 per intentional violation and $2,500 per unintentional violation, as enforced by the California Privacy Protection Agency.

Action Items for Employers

Employers should take immediate steps to audit their current data privacy practices. This includes:

1. Review and Update Privacy Policies: Ensure that employee privacy notices are comprehensive and clearly outline data collection, usage, and sharing practices.

2. Train HR and IT Staff: Conduct training sessions on the new CPRA requirements to ensure that relevant staff understand their roles in compliance.

3. Implement Data Access Protocols: Establish processes for employees to access, correct, and delete their personal data as required by the CPRA.

4. Enhance Data Security Measures: Review and strengthen data protection measures to prevent unauthorized access and breaches.

5. Consult Legal Counsel: Engage with legal experts to ensure full compliance with the CPRA and to prepare for any potential legal challenges.

Employers in California must act swiftly to align with these regulations, as the CPRA's enforcement provisions are now active. By proactively addressing these requirements, businesses can mitigate risks and protect employee privacy effectively.