With both the Federal election and November ballot, it has been quite a week!
This Weekly Brief will outline the impact of the ballot on California privacy and independent contractor classification. If you’d like to skip straight through to all the ballot results, you can follow this link.
The California Privacy Rights Act (CPRA) Passes
New privacy laws amend and extend the California Consumer Privacy Act (CCPA) to create new and expanded GDPR-like rights for California residents. These new rights include the right for consumers to ask businesses to correct or delete their personal information and increased control over ‘sensitive data’, such as race, health, religious beliefs, and precise geographical information.
An enforcement agency will also be created under the CPRA to give teeth to increased fines for privacy breaches and misuse of children’s data.
These laws apply to businesses that:
- Generate more than $25 million in annual revenue;
- Hold the personal information of 100,000 or more people (up from 50,000 under the CCPA); or
- Make 50% or more of its revenue from sharing or selling the personal data of consumers.
The CPRA will come into effect in 2023, so there’s ample time for your business to prepare for the changes. In that time, you’ll need to update your existing privacy policies and audit your internal and customer-facing processes to ensure compliance.
Uber/Lyft’s $200 million Proposition 22 Passes
Proposition 22, a proposition backed by Uber, Lyft, DoorDash, Instacart, and Postmates, exempts app-based drivers from Assembly Bill 5. AB-5 was enacted to provide gig economy workers with additional protections, like sick leave and minimum wage entitlements.
While Prop 22 exempts app-based drivers from the protections provided by AB-5, it does provide for accident insurance, benefits, compensation for vehicle expenses, and a minimum wage guarantee, alongside protection from harassment and discrimination.
These laws apply only to “Delivery Network Companies”. So, if your business falls outside of this definition and is not otherwise exempt from AB-5, you should carefully consider the correct classification of your workforce.
You can view the full text of Proposition 22 here.
Don’t hesitate to reach out if you need assistance following these changes. We’re here to help!
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